Securities and Exchange Commission v. Patrick Jevon Johnson et al, No. 2:2020cv08985 - Document 219 (C.D. Cal. 2023)

Court Description: FINAL JUDGMENT AS TO DEFENDANT NVC FUND, LLC by Judge Fred W. Slaughter. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for a civil penalty in the amount of $968,837 pursuant to Section 21(d)(3) of the Exchange Act, 15 U.S.C. S 78u(d)(3). Defendant shall satisfy this obligation by paying $968,837 to the Securities and Exchange Commission within 30 days after entry of this Final Judgment. See judgment for details. (MD JS-6, Case Terminated). (lom) Modified on 3/23/2023 (lom).

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Securities and Exchange Commission v. Patrick Jevon Johnson et al Doc. 219 1 2 3 JS-6 4 5 6 7 8 9 UNITED STATES DISTRICT COURT 10 CENTRAL DISTRICT OF CALIFORNIA 11 SOUTHERN DIVISION 12 13 14 SECURITIES AND EXCHANGE COMMISSION, 15 Plaintiff, 16 17 18 19 20 Case No. 2:20-cv-08985-FWS-DFM FINAL JUDGMENT AS TO DEFENDANT NVC FUND, LLC vs. PATRICK JEVON JOHNSON, CHARLES EVERETT (aka CHARLY EVERETT), FRANK EKEJIJA, AND NVC FUND, LLC. Defendants. 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 (“SEC”) Motion for Entry of Civil Penalties against defendant NVC 3 Fund, LLC. The Court, having previously entered an August 25, 2021 Partial 4 Judgment As To Defendant NVC Fund LLC (Dkt. No. 100), and having now 5 considered the memoranda and evidence filed by the parties, and all other argument 6 and evidence presented to it, and good cause appearing therefore, grants the SEC’s 7 Motion and enters this Final Judgment as to NVC Fund, LLC (“Defendant”). I. 8 9 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 10 Defendant is permanently restrained and enjoined from violating, directly or 11 indirectly, Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange 12 Act”) [15 U.S.C. § 78j(b)], and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5, in 13 connection with the purchase or sale of any security, by using any means or 14 instrumentality of interstate commerce, or of the mails, or of any facility of any 15 national securities exchange: 16 (a) to employ any device, scheme, or artifice to defraud; or 17 (b) to engage in any transaction, practice, or course of business which 18 operates or would operate as a fraud or deceit upon the purchaser. 19 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 20 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 21 binds the following who receive actual notice of this Final Judgment by personal 22 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 23 attorneys; and (b) other persons in active concert or participation with Defendant or 24 with anyone described in (a). 25 II. 26 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 27 is liable for a civil penalty in the amount of $968,837 pursuant to Section 21(d)(3) of 28 the Exchange Act, 15 U.S.C. § 78u(d)(3). Defendant shall satisfy this obligation by 1 1 paying $968,837 to the Securities and Exchange Commission within 30 days after 2 entry of this Final Judgment. 3 Defendant may transmit payment electronically to the Commission, which will 4 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 5 be made directly from a bank account via Pay.gov through the SEC website at 6 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 7 check, bank cashier’s check, or United States postal money order payable to the 8 Securities and Exchange Commission, which shall be delivered or mailed to 9 10 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 11 12 and shall be accompanied by a letter identifying the case title, civil action number, 13 and name of this Court; NVC Fund, LLC 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 The Commission may enforce the Court’s judgment for penalties by the use of 20 all collection procedures authorized by law, including the Federal Debt Collection 21 Procedures Act, 28 U.S.C. § 3001 et seq., and moving for civil contempt for the 22 violation of any Court orders issued in this action. Defendant shall pay post 23 judgment interest on any amounts due after 30 days of the entry of this Final 24 Judgment pursuant to 28 U.S.C. § 1961. The Commission shall hold the funds, 25 together with any interest and income earned thereon (collectively, the “Fund”), 26 pending further order of the Court. 27 28 The Commission may propose a plan to distribute the Fund subject to the Court’s approval. Such a plan may provide that the Fund shall be distributed 2 1 pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2 2002. The Court shall retain jurisdiction over the administration of any distribution 3 of the Fund and the Fund may only be disbursed pursuant to an Order of the Court. 4 Regardless of whether any such Fair Fund distribution is made, amounts ordered to 5 be paid as civil penalties pursuant to this Judgment shall be treated as penalties paid 6 to the government for all purposes, including all tax purposes. To preserve the 7 deterrent effect of the civil penalty, Defendant shall not, after offset or reduction of 8 any award of compensatory damages in any Related Investor Action based on 9 Defendant’s payment of disgorgement in this action, argue that it is entitled to, nor 10 shall it further benefit by, offset or reduction of such compensatory damages award 11 by the amount of any part of Defendant’s payment of a civil penalty in this action 12 (“Penalty Offset”). If the court in any Related Investor Action grants such a Penalty 13 Offset, Defendant shall, within 30 days after entry of a final order granting the 14 Penalty Offset, notify the Commission’s counsel in this action and pay the amount of 15 the Penalty Offset to the United States Treasury or to a Fair Fund, as the Commission 16 directs. Such a payment shall not be deemed an additional civil penalty and shall not 17 be deemed to change the amount of the civil penalty imposed in this Judgment. For 18 purposes of this paragraph, a “Related Investor Action” means a private damages 19 action brought against Defendant by or on behalf of one or more investors based on 20 substantially the same facts as alleged in the Complaint in this action. III. 21 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 22 23 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 24 Final Judgment. 25 /// 26 /// 27 /// 28 /// 3 1 IV. 2 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 3 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith 4 and without further notice. 5 6 7 8 9 DATED: March 22, 2023 Hon. Fred W. Slaughter UNITED STATES DISTRICT JUDGE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4

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