Securities and Exchange Commission v. Patrick Jevon Johnson et al, No. 2:2020cv08985 - Document 217 (C.D. Cal. 2023)
Court Description: FINAL JUDGMENT AS TO DEFENDANT CHARLES EVERETT by Judge Fred W. Slaughter. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for a civil penalty in the amount of $168,090.00 pursuant to Section 20(d) of the Securities Act [15 U.S.C. S 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. S 78u(d)(3). Defendant shall satisfy these obligation(s) by paying$168,090.00 to the Securities and Exchange Commission within 30 days after entryof this Final Judgment. See judgment for further details. (lom)
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Securities and Exchange Commission v. Patrick Jevon Johnson et al Doc. 217 1 2 3 JS-6 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 SOUTHERN DIVISION 11 12 SECURITIES AND EXCHANGE COMMISSION, 13 Plaintiff, 14 15 16 17 Case No. 2:20-cv-08985-FWS-DFM FINAL JUDGMENT AS TO DEFENDANT CHARLES EVERETT vs. PATRICK JEVON JOHNSON, CHARLES EVERETT (aka CHARLY EVERETT), FRANK EKEJIJA, AND NVC FUND, LLC. Defendants. 18 19 20 21 22 23 24 25 26 27 28 Dockets.Justia.com 1 This matter came before the Court upon Plaintiff Securities and Exchange 2 Commission’s (the “SEC’s”) Motion for Summary Judgment against Defendant 3 Charles Everett, aka Charly Everett (“Defendant” or “Everett”), made under Fed. R. 4 Civ. P. 56. The Court having considered the memoranda and evidence filed by the 5 parties, and all other argument and evidence presented to it, and good cause 6 appearing therefor: 7 8 I. IT IS HEREBY ORDERED that the SEC’s Motion is GRANTED. 9 10 II. 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 20 of the circumstances under which they were made, not 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 III. 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 10 make the statements made, in light of the circumstances under which 11 they were made, not misleading; or 12 (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. 13 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: (a) Defendant’s officers, agents, servants, employees, and 18 attorneys; and (b) other persons in active concert or participation with Defendant or 19 with anyone described in (a). 20 21 IV. 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: (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 V. 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 from acting as an 23 officer or director of any issuer that has a class of securities registered pursuant to 24 Section 12 of the Exchange Act [15 U.S.C. § 78l] or that is required to file reports 25 pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)] for a period of 26 five (5) years from the date of this final judgment. 27 28 VI. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 3 1 Defendant is barred from participating in an offering of penny stock, including 2 engaging in activities with a broker, dealer, or issuer for purposes of issuing, trading, 3 or inducing or attempting to induce the purchase or sale of any penny stock for a 4 period of five (5) years from the date of this final judgment. A penny stock is any 5 equity security that has a price of less than five dollars, except as provided in 6 Rule 3a51-1 under the Exchange Act [17 C.F.R.§ 240.3a51-1]. 7 VII. 8 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 9 is liable for a civil penalty in the amount of $168,090.00 pursuant to Section 20(d) of 10 the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 11 U.S.C. § 78u(d)(3). Defendant shall satisfy these obligation(s) by paying 12 $168,090.00 to the Securities and Exchange Commission within 30 days after entry 13 of this Final Judgment. 14 Defendant may transmit payment electronically to the Commission, which will 15 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 16 be made directly from a bank account via Pay.gov through the SEC website at 17 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 18 check, bank cashier’s check, or United States postal money order payable to the 19 Securities and Exchange Commission, which shall be delivered or mailed to 20 21 22 23 24 25 26 27 28 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 and shall be accompanied by a letter identifying the case title, civil action number, and name of this Court; Charles Everett as a defendant in this action; and specifying that payment is made pursuant to this Final Judgment. Defendant shall simultaneously transmit photocopies of evidence of payment and case identifying information to the Commission’s counsel in this action. By making this payment, Defendant relinquishes all legal and equitable right, title, and 4 1 interest in such funds and no part of the funds shall be returned to Defendant. The 2 Commission shall send the funds paid pursuant to this Final Judgment to the United 3 States Treasury. 4 The Commission may enforce the Court’s judgment for penalties by the use of 5 all collection procedures authorized by law, including the Federal Debt Collection 6 Procedures Act, 28 U.S.C. § 3001 et seq., and moving for civil contempt for the 7 violation of any Court orders issued in this action. Defendant shall pay post 8 judgment interest on any amounts due after 30 days of the entry of this Final 9 Judgment pursuant to 28 U.S.C. § 1961. The Commission shall hold the funds, 10 together with any interest and income earned thereon (collectively, the “Fund”), 11 pending further order of the Court. 12 The Commission may propose a plan to distribute the Fund subject to the 13 Court’s approval. Such a plan may provide that the Fund shall be distributed 14 pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 15 2002. The Court shall retain jurisdiction over the administration of any distribution 16 of the Fund and the Fund may only be disbursed pursuant to an Order of the Court. 17 Regardless of whether any such Fair Fund distribution is made, amounts 18 ordered to be paid as civil penalties pursuant to this Judgment shall be treated as 19 penalties paid to the government for all purposes, including all tax purposes. To 20 preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or 21 reduction of any award of compensatory damages in any Related Investor Action 22 based on Defendant’s payment of disgorgement in this action, argue that he is entitled 23 to, nor shall he further benefit by, offset or reduction of such compensatory damages 24 award by the amount of any part of Defendant’s payment of a civil penalty in this 25 action (“Penalty Offset”). If the court in any Related Investor Action grants such a 26 Penalty Offset, Defendant shall, within 30 days after entry of a final order granting 27 the Penalty Offset, notify the Commission’s counsel in this action and pay the amount 28 of the Penalty Offset to the United States Treasury or to a Fair Fund, as the 5 1 Commission directs. Such a payment shall not be deemed an additional civil penalty 2 and shall not be deemed to change the amount of the civil penalty imposed in this 3 Judgment. For purposes of this paragraph, a “Related Investor Action” means a 4 private damages action brought against Defendant by or on behalf of one or more 5 investors based on substantially the same facts as alleged in the Complaint in this 6 action. 7 VIII. 8 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 9 10 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. 11 12 DATED: March 22, 2023 13 14 15 Hon. Fred W. Slaughter UNITED STATES DISTRICT JUDGE 16 17 18 19 20 21 22 23 24 25 26 27 28 6
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