United States Securities and Exchange Commission v. Western International Securities, Inc. et al, No. 2:2022cv04119 - Document 136 (C.D. Cal. 2024)
Court Description: FINAL JUDGMENT AS TO DEFENDANT ANDY GITIPITYAPON by Judge Wesley L. Hsu in favor of United States Securities and Exchange Commission against Andy Gitipityapon: IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined. Defendant shall satisfy this obligation by paying $19,520.84 to the Securities and Exchange Commission within 30 days after entry of this Final Judgment. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. (see document for further details). Related to: NOTICE OF MOTION AND MOTION for Judgment by Consent 129 . (bm) Modified on 8/28/2024 (bm).
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United States Securities and Exchange Commission v. Western International Securities, Inc. et al Doc. 136 1 2 3 4 5 6 UNITED STATES DISTRICT COURT 7 CENTRAL DISTRICT OF CALIFORNIA 8 9 UNITED STATES SECURITIES AND EXCHANGE COMMISSION, 10 Plaintiff, 11 12 13 14 15 v. Case No. 2:22-cv-04119-WLH-JCx WESTERN INTERNATIONAL SECURITIES, INC., NANCY COLE, PATRICK EGAN, ANDY GITIPITYAPON, STEVEN GRAHAM, and THOMAS SWAN, 16 17 Defendants, 18 19 20 FINAL JUDGMENT AS TO DEFENDANT ANDY GITIPITYAPON The Securities and Exchange Commission having filed a Complaint and 21 Defendant Andy Gitipityapon (“Defendant”) having entered a general appearance; 22 23 consented to the Court’s jurisdiction over Defendant and the subject matter of this 24 action; consented to entry of this Final Judgment without admitting or denying the 25 26 27 allegations of the Complaint (except as to jurisdiction and except as otherwise provided herein in paragraph IV); waived findings of fact and conclusions of law; 28 Final Judgment as to Defendant Andy Gitipityapon 1 Case No. 2:22-cv-04119-WLH-JC Dockets.Justia.com 1 and waived any right to appeal from this Final Judgment: I. 2 3 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 4 5 is permanently restrained and enjoined from violating, directly or indirectly, Rule 6 15l-1(a)(1) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 CFR 7 § 240.15l-1(a)(1)], by failing, when making a recommendation of any securities 8 9 10 11 transaction or investment strategy involving securities to a retail customer, to act in the best interest of the retail customer at the time the recommendation is made, without placing his financial or other interest ahead of the interest of the retail 12 13 14 15 customer. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 16 17 binds the following who receive actual notice of this Final Judgment by personal 18 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 19 attorneys; and (b) other persons in active concert or participation with Defendant 20 21 or with anyone described in (a). 22 II. 23 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 24 25 that Defendant is liable for disgorgement of $6,652.50, representing net profits 26 gained as a result of the conduct alleged in the Complaint, together with 27 28 Final Judgment as to Defendant Andy Gitipityapon 2 Case No. 2:22-cv-04119-WLH-JC 1 2 3 prejudgment interest thereon in the amount of $368.34, and a civil penalty in the amount of $12,500 pursuant to Sections 21(d)(3), (5), and (7) of the Exchange Act [15 U.S.C. §§ 78u(d)(3), (5), (7)]. Defendant shall satisfy this obligation by paying 4 5 $19,520.84 to the Securities and Exchange Commission within 30 days after entry 6 of this Final Judgment. 7 Defendant may transmit payment electronically to the Commission, which 8 9 10 11 will provide detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a bank account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by 12 13 certified check, bank cashier’s check, or United States postal money order payable 14 to the Securities and Exchange Commission, which shall be delivered or mailed to 15 16 17 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 18 19 20 and shall be accompanied by a letter identifying the case title, civil action number, and name of this Court; Andy Gitipityapon as a defendant in this action; and 21 specifying that payment is made pursuant to this Final Judgment. 22 23 24 Defendant shall simultaneously transmit photocopies of evidence of 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 27 right, title, and interest in such funds and no part of the funds shall be returned to 28 Final Judgment as to Defendant Andy Gitipityapon 3 Case No. 2:22-cv-04119-WLH-JC 1 2 3 Defendant. The Commission may enforce the Court’s judgment for disgorgement and prejudgment interest by using all collection procedures authorized by law, 4 5 including, but not limited to, moving for civil contempt at any time after 30 days 6 following entry of this Final Judgment. 7 The Commission may enforce the Court’s judgment for penalties by the use 8 9 of all collection procedures authorized by law, including the Federal Debt 10 Collection Procedures Act, 28 U.S.C. § 3001 et seq., and moving for civil 11 contempt for the violation of any Court orders issued in this action. Defendant 12 13 shall pay post judgment interest on any amounts due after 30 days of the entry of 14 this Final Judgment pursuant to 28 U.S.C. § 1961. The Commission shall hold the 15 funds, together with any interest and income earned thereon (collectively, the 16 17 18 “Fund”), pending further order of the Court. The Commission may propose a plan to distribute the Fund subject to the 19 Court’s approval. Such a plan may provide that the Fund shall be distributed 20 21 pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act 22 of 2002. The Court shall retain jurisdiction over the administration of any 23 distribution of the Fund and the Fund may only be disbursed pursuant to an Order 24 25 26 of the Court. Regardless of whether any such Fair Fund distribution is made, amounts 27 28 Final Judgment as to Defendant Andy Gitipityapon 4 Case No. 2:22-cv-04119-WLH-JC 1 2 3 ordered to be paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the government for all purposes, including all tax purposes. To preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or 4 5 reduction of any award of compensatory damages in any Related Investor Action 6 based on Defendant’s payment of disgorgement in this action, argue that he is 7 entitled to, nor shall he further benefit by, offset or reduction of such compensatory 8 9 damages award by the amount of any part of Defendant’s payment of a civil 10 penalty in this action (“Penalty Offset”). If the court in any Related Investor 11 Action grants such a Penalty Offset, Defendant shall, within 30 days after entry of 12 13 a final order granting the Penalty Offset, notify the Commission’s counsel in this 14 action and pay the amount of the Penalty Offset to the United States Treasury or to 15 a Fair Fund, as the Commission directs. Such a payment shall not be deemed an 16 17 additional civil penalty and shall not be deemed to change the amount of the civil 18 penalty imposed in this Judgment. For purposes of this paragraph, a “Related 19 Investor Action” means a private damages action brought against Defendant by or 20 21 on behalf of one or more investors based on substantially the same facts as alleged 22 in the Complaint in this action. 23 III. 24 25 26 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated herein with the same force and effect as if fully set forth 27 28 Final Judgment as to Defendant Andy Gitipityapon 5 Case No. 2:22-cv-04119-WLH-JC 1 2 herein, and that Defendant shall comply with all of the undertakings and agreements set forth therein. 3 IV. 4 5 6 7 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. §523, the allegations in the complaint are true and admitted by Defendant, 8 9 and further, any debt for disgorgement, prejudgment interest, civil penalty or other 10 amounts due by Defendant under this Final Judgment or any other judgment, order, 11 consent order, decree or settlement agreement entered in connection with this 12 proceeding, is a debt for the violation by Defendant of the federal securities laws or 13 14 any regulation or order issued under such laws, as set forth in Section 523(a)(19) of 15 the Bankruptcy Code, 11 U.S.C. §523(a)(19). 16 V. 17 18 19 20 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. 21 22 23 Dated: August 28, 2024 24 ____________________________________ HON. WESLEY L. HSU UNITED STATES DISTRICT JUDGE 25 26 27 28 Final Judgment as to Defendant Andy Gitipityapon 6 Case No. 2:22-cv-04119-WLH-JC
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