Securities and Exchange Commission v. Peter H. Pocklington et al, No. 5:2018cv00701 - Document 109 (C.D. Cal. 2020)

Court Description: FINAL JUDGMENT AS TO DEFENDANT LANTSON E. ELDRED by Judge Mark C. Scarsi: IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchan ge 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: (a) to employ any device, scheme, or artifi ce to defraud; (b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or (c) to engage in a ny act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay a civil penalty in the amount of pursuant to Section 20(d) of t he Securities Act 15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3). Defendant shall satisfy this obligation by paying $90,535 to the Securities and Exchange Commission within 30 days after entry of th is Final Judgment. The Commission may propose a plan to distribute the Fund subject to the Courts approval. Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. The Court shall retain jurisdiction over the administration of any distribution of the Fund. 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 order for further details.Related to: Stipulation for Judgment 108 (shb)
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Securities and Exchange Commission v. Peter H. Pocklington et al Doc. 109 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 12 SECURITIES AND EXCHANGE COMMISSION, 13 Plaintiff, 14 15 16 17 18 19 20 21 22 23 24 Case No. 5:18-cv-00701-MCS-SP FINAL JUDGMENT AGAINST DEFENDANT LANTSON E. ELDRED vs. PETER H. POCKLINGTON, LANTSON E. ELDRED, TERRENCE J. WALTON, YOLANDA C. VELAZQUEZ a/k/a LANA VELAZQUEZ a/k/a LANA PULEO, VANESSA PULEO, ROBERT A. VANETTEN, NOVA OCULUS PARTNERS, LLC, f/k/a THE EYE MACHINE, LLC, and AMC HOLDINGS, LLC, Defendants. EVA S. POCKLINGTON, DTR HOLDINGS, LLC, COBRA CHEMICAL, LLC, and GOLD STAR RESOURCES, LLC, Relief Defendants. 25 26 27 28 Case No. 5:18-cv-00701-MCS-SP Dockets.Justia.com 1 FINAL JUDGMENT AS TO DEFENDANT LANTSON E. ELDRED 2 The Securities and Exchange Commission having filed a Complaint and 3 Defendant Lantson E. Eldred (“Defendant”) having entered a general appearance; 4 consented to the Court’s jurisdiction over Defendant and the subject matter of this 5 action; consented to entry of this Final Judgment without admitting or denying the 6 allegations of the Complaint (except as to jurisdiction and except as otherwise 7 provided herein in paragraph V); waived findings of fact and conclusions of law; and 8 waived any right to appeal from this Final Judgment: I. 9 10 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 of the 20 circumstances under which they were made, not misleading; or 21 (c) 22 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). to engage in any act, practice, or course of business which operates or 1 1 II. 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 make the 10 statements made, in light of the circumstances under which they were made, 11 not misleading; or 12 (c) 13 operates or would operate as a fraud or deceit upon the purchaser. 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). to engage in any transaction, practice, or course of business which III. 20 21 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 22 Defendant shall pay a civil penalty in the amount of pursuant to Section 20(d) of the 23 Securities Act 15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 24 U.S.C. § 78u(d)(3). Defendant shall satisfy this obligation by paying $90,535 to the 25 Securities and Exchange Commission within 30 days after entry of this Final 26 Judgment. 27 Defendant may transmit payment electronically to the Commission, which will 28 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 2 1 be made directly from a bank account via Pay.gov through the SEC website at 2 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 3 check, bank cashier’s check, or United States postal money order payable to the 4 Securities and Exchange Commission, which shall be delivered or mailed to 5 Enterprise Services Center 6 Accounts Receivable Branch 7 6500 South MacArthur Boulevard 8 Oklahoma City, OK 73169 9 and shall be accompanied by a letter identifying the case title, civil action number, 10 and name of this Court, Lantson E. Eldred as a defendant in this action, and 11 specifying that payment is made pursuant to this Final Judgment. 12 Defendant shall simultaneously transmit photocopies of evidence of payment 13 and case identifying information to the Commission’s counsel in this action. By 14 making this payment, Defendant relinquishes all legal and equitable right, title, and 15 interest in such funds and no part of the funds shall be returned to Defendant. 16 The Commission may enforce the Court’s judgment through any collection 17 procedures authorized by law at any time after 30 days following entry of this Final 18 Judgment. Defendant shall pay post judgment interest on any delinquent amounts 19 pursuant to 28 U.S.C. § 1961. The Commission shall hold the funds, together with 20 any interest and income earned thereon (collectively, the “Fund”), pending further 21 order of the Court. 22 The Commission may propose a plan to distribute the Fund subject to the 23 Court’s approval. Such a plan may provide that the Fund shall be distributed 24 pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 25 2002. The Court shall retain jurisdiction over the administration of any distribution 26 of the Fund. If the Commission staff determines that the Fund will not be distributed, 27 the Commission shall send the funds paid pursuant to this Final Judgment to the 28 United States Treasury. 3 1 Regardless of whether any such Fair Fund distribution is made, amounts 2 ordered to be paid as civil penalties pursuant to this Judgment shall be treated as 3 penalties paid to the government for all purposes, including all tax purposes. To 4 preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or 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 entitled 7 to, nor shall he further benefit by, offset or reduction of such compensatory damages 8 award by the amount of any part of Defendant’s payment of a civil penalty in this 9 action (“Penalty Offset”). If the court in any Related Investor Action grants such a 10 Penalty Offset, Defendant shall, within 30 days after entry of a final order granting 11 the Penalty Offset, notify the Commission’s counsel in this action and pay the amount 12 of the Penalty Offset to the United States Treasury or to a Fair Fund, as the 13 Commission directs. Such a payment shall not be deemed an additional civil penalty 14 and shall not be deemed to change the amount of the civil penalty imposed in this 15 Judgment. For purposes of this paragraph, a “Related Investor Action” means a 16 private damages action brought against Defendant by or on behalf of one or more 17 investors based on substantially the same facts as alleged in the Complaint in this 18 action. IV 19 20 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 21 Consent is incorporated herein with the same force and effect as if fully set forth 22 herein, and that Defendant shall comply with all of the undertakings and agreements 23 set forth therein. 24 25 V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for 26 purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 27 11 U.S.C. §523, the allegations in the complaint are true and admitted by Defendant, 28 and further, any debt for disgorgement, prejudgment interest, civil penalty or other 4 1 amounts due by Defendant under this Final Judgment or any other judgment, order, 2 consent order, decree or settlement agreement entered in connection with this 3 proceeding, is a debt for the violation by Defendant of the federal securities laws or 4 any regulation or order issued under such laws, as set forth in Section 523(a)(19) of 5 the Bankruptcy Code, 11 U.S.C. §523(a)(19). VI. 6 7 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 8 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 9 Final Judgment. 10 11 12 13 14 Dated: December 8, 2020 ____________________________________ MARK C. SCARSI UNITED STATES DISTRICT JUDGE 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5