Securities and Exchange Commission v. Richard Jonathan Eden et al, No. 2:2019cv09358 - Document 14 (C.D. Cal. 2019)
Court Description: FINAL JUDGMENT AS TO DEFENDANT RICHARD JOHNATHAN EDEN by Judge Stephen V. Wilson. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Sec urities Exchange Act of 1934 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 JUDGMENT FOR FURTHER DETAILS) (yl)
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Securities and Exchange Commission v. Richard Jonathan Eden et al 1 Doc. 14 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA WESTERN DIVISION 2 3 4 5 SECURITIES AND EXCHANGE COMMISSION, Case No.: 2:19-cv-09358-SVW-SK 6 Plaintiff, 7 8 9 10 11 12 13 vs. RICHARD JOHNATHAN EDEN, an individual; and CHRISTOPHER MICHAEL NEUMANN, an individual, Defendants. 14 [PROPOSED] FINAL JUDGMENT AS TO DEFENDANT RICHARD JOHNATHAN EDEN 15 The Securities and Exchange Commission having filed a Complaint and 16 Defendant Richard Johnathan Eden having entered a general appearance; 17 consented to the Court’s jurisdiction over Defendant and the subject matter of this 18 action; consented to entry of this Final Judgment without admitting or denying the 19 allegations of the Complaint (except as to jurisdiction and except as otherwise 20 provided herein in paragraph VI); waived findings of fact and conclusions of law; 21 and waived any right to appeal from this Final Judgment: 22 I. 23 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 24 is permanently restrained and enjoined from violating, directly or indirectly, Section 25 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 26 78j(b)] and Rule 10b 5 promulgated thereunder [17 C.F.R. § 240.10b 5], by using 27 28 1 Dockets.Justia.com 1 any means or instrumentality of interstate commerce, or of the mails, or of any 2 facility of any national securities exchange, in connection with the purchase or sale 3 of any security: 4 (a) to employ any device, scheme, or artifice to defraud; 5 (b) to make any untrue statement of a material fact or to omit to state a 6 material fact necessary in order to make the statements made, in the light of 7 the circumstances under which they were made, not misleading; or 8 (c) 9 would operate as a fraud or deceit upon any person. to engage in any act, practice, or course of business which operates or 10 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 11 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 12 binds the following who receive actual notice of this Judgment by personal service 13 or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; 14 and (b) other persons in active concert or participation with Defendant or with 15 anyone described in (a). 16 II. 17 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 18 Defendant is permanently restrained and enjoined from violating Section 17(a) of 19 the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or 20 sale of any security by the use of any means or instruments of transportation or 21 communication in interstate commerce or by use of the mails, directly or indirectly: 22 (a) to employ any device, scheme, or artifice to defraud; 23 (b) to obtain money or property by means of any untrue statement of a 24 material fact or any omission of a material fact necessary in order to make the 25 statements made, in light of the circumstances under which they were made, 26 not misleading; or 27 (c) 28 to engage in any transaction, practice, or course of business which 2 1 operates or would operate as a fraud or deceit upon the purchaser. 2 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 3 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 4 binds the following who receive actual notice of this Judgment by personal service 5 or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; 6 and (b) other persons in active concert or participation with Defendant or with 7 anyone described in (a). 8 III. 9 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 10 is permanently restrained and enjoined from violating, directly or indirectly, Section 11 15(a)(1) of the Exchange Act [15 U.S.C. § 78o(a)(1)] by using any means or 12 instrumentality of interstate commerce, or of the mails, or of any facility of any 13 national securities exchange, to effect transactions in, or induce or attempt to induce 14 the purchase or sale of, securities while not registered with the Commission as a 15 broker or dealer or while not associated with an entity registered with the 16 Commission as a broker or dealer. 17 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 18 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 19 binds the following who receive actual notice of this Judgment by personal service 20 or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; 21 and (b) other persons in active concert or participation with Defendant or with 22 anyone described in (a). 23 24 IV. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 25 is permanently restrained and enjoined from violating Section 5 of the Securities 26 Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable 27 exemption: 28 3 1 (a) unless a registration statement is in effect as to a security, 2 making use of any means or instruments of transportation or 3 communication in interstate commerce or of the mails to sell 4 such security through the use or medium of any prospectus or 5 otherwise; 6 (b) unless a registration statement is in effect as to a security, 7 carrying or causing to be carried through the mails or in 8 interstate commerce, by any means or instruments of 9 transportation, any such security for the purpose of sale or for delivery after sale, or; 10 11 (c) making use of any means or instruments of transportation or 12 communication in interstate commerce or of the mails to offer 13 to sell or offer to buy through the use or medium of any 14 prospectus or otherwise any security, unless a registration 15 statement has been filed with the Commission as to such 16 security, or while the registration statement is the subject of a 17 refusal order or stop order or (prior to the effective date of the 18 registration statement) any public proceeding or examination 19 under Section 8 of the Securities Act [15 U.S.C. § 77h]. 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 Final Judgment by personal 23 service or otherwise: (a) the officers, agents, servants, employees, and attorneys of 24 either Defendant; and (b) other persons in active concert or participation with 25 either Defendant or with anyone described in (a). 26 27 28 4 1 2 3 V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 4 Defendant is liable for disgorgement of $777,271.57, representing profits gained 5 as a result of the conduct alleged in the Complaint, together with prejudgment 6 interest thereon in the amount of $55,146.68 and a civil penalty in the amount of 7 $125,000.00 pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] 8 and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant 9 shall satisfy this obligation by paying the amounts set forth above to the Securities 10 11 and Exchange Commission within 30 days after entry of this Final Judgment. Defendant may transmit payment electronically to the Commission, which 12 will provide detailed ACH transfer/Fedwire instructions upon request. Payment 13 may also be made directly from a bank account via Pay.gov through the SEC 14 website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by 15 certified check, bank cashier’s check, or United States postal money order payable 16 to the Securities and Exchange Commission, which shall be delivered or mailed to 17 18 19 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 20 and shall be accompanied by a letter identifying the case title, civil action number, 21 and name of this Court; Richard Johnathan Eden as a defendant in this action; and 22 specifying that payment is made pursuant to this Final Judgment. 23 Defendant shall simultaneously transmit photocopies of evidence of 24 payment and case identifying information to the Commission’s counsel in this 25 action. By making this payment, Defendant relinquishes all legal and equitable 26 right, title, and interest in such funds and no part of the funds shall be returned to 27 Defendant. The Commission shall send the funds paid pursuant to this Final 28 5 1 2 Judgment to the United States Treasury. The Commission may enforce the Court’s judgment for disgorgement and 3 prejudgment interest by moving for civil contempt (and/or through other collection 4 procedures authorized by law) at any time after 30 days following entry of this 5 Final Judgment. Defendant shall pay post judgment interest on any delinquent 6 amounts pursuant to 28 U.S.C. § 1961. 7 8 VI. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely 9 for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy 10 Code [11 U.S.C. §523], the allegations in the complaint are true and admitted by 11 Defendant, and further, any debt for disgorgement, prejudgment interest, civil 12 penalty or other amounts due by Defendant under this Final Judgment or any other 13 judgment, order, consent order, decree or settlement agreement entered in 14 connection with this proceeding, is a debt for the violation by Defendant of the 15 federal securities laws or any regulation or order issued under such laws, as set 16 forth in Section 523(a)(19) of the Bankruptcy Code [11 U.S.C. §523(a)(19)]. 17 VII. 18 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this 19 Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 20 of this Final Judgment. 21 22 23 December 12, 2019 Dated: ______________________, _____ 24 25 26 ____________________________________ UNITED STATES DISTRICT JUDGE 27 28 6
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