Securities and Exchange Commission v. Peter H. Pocklington et al, No. 5:2018cv00701 - Document 201 (C.D. Cal. 2022)

Court Description: FINAL JUDGMENT ON CONSENT AS TO DEFENDANT ROBERT A. VANETTEN 175 by Judge Fernando L. Aenlle-Rocha : Defendant Robert A. Vanetten is permanently restrained and enjoined from violating the Securities Act as cited herein. Defendant is liable for d isgorgement of $114,200.00, representing net profits gained [net losses avoided] as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $18,825.00, and a civil penalty in the amount of $27,162.00. Defendant shall satisfy this obligation by paying $160,187.00 to the Securities and Exchange Commission within one year after entry of this Final Judgment. (SEE DOCUMENT FOR COMPLIANCE REQUIREMENTS AND DEADLINES). (lc)
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Securities and Exchange Commission v. Peter H. Pocklington et al Doc. 201 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 12 SECURITIES AND EXCHANGE COMMISSION, 15 16 17 18 19 20 21 22 23 24 25 FINAL JUDGMENT AS TO DEFENDANT ROBERT A. VANETTEN [DKT. 175] Plaintiff, 13 14 Case No. 5:18-cv-00701-FLA (SPx) v. 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. 26 27 28 1 Dockets.Justia.com 1 2 FINAL JUDGMENT AS TO ROBERT A. VANETTEN The Securities and Exchange Commission (the “Commission”) having filed a 3 Complaint and Defendant Robert A. Vanetten (“Defendant”) having entered a general 4 appearance; consented to the court’s jurisdiction over Defendant and the subject 5 matter of this action; consented to entry of this Final Judgment without admitting or 6 denying the allegations of the Complaint (except as to jurisdiction and except as 7 otherwise provided herein in paragraph IV); waived findings of fact and conclusions 8 of law; and waived any right to appeal from this Final Judgment: 9 10 I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 11 permanently restrained and enjoined from violating Section 5 of the Securities Act 12 [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable 13 exemption: 14 (a) Unless a registration statement is in effect as to a security, making use of 15 any means or instruments of transportation or communication in 16 interstate commerce or of the mails to sell such security through the use 17 or medium of any prospectus or otherwise; 18 (b) Unless a registration statement is in effect as to a security, carrying or 19 causing to be carried through the mails or in interstate commerce, by any 20 means or instruments of transportation, any such security for the purpose 21 of sale or for delivery after sale; or 22 (c) Making use of any means or instruments of transportation or 23 communication in interstate commerce or of the mails to offer to sell or 24 offer to buy through the use or medium of any prospectus or otherwise 25 any security, unless a registration statement has been filed with the 26 Commission as to such security, or while the registration statement is the 27 subject of a refusal order or stop order or (prior to the effective date of 28 the registration statement) any public proceeding or examination under 2 1 Section 8 of the Securities Act [15 U.S.C. § 77h]. 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 Final Judgment by personal 5 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 6 attorneys; and (b) other persons in active concert or participation with Defendant or 7 with anyone described in (a). 8 9 II. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 10 Defendant is permanently restrained and enjoined from violating, directly or 11 indirectly, Section 15(a) of the Securities Exchange Act of 1934 (the “Exchange 12 Act”) [15 U.S.C. § 78o(a)] by making use of the mails or any means or 13 instrumentality of interstate commerce to effect any transactions in, or to induce or 14 attempt to induce the purchase or sale of, any security, without being registered as a 15 broker and/or dealer pursuant to Section 15(b) of the Exchange Act [15 U.S.C. § 16 78o(b)] or while Defendants are not associated with an entity registered with the 17 Commission as a broker or dealer. 18 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 19 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 20 binds the following who receive actual notice of this Final Judgment by personal 21 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 22 attorneys; and (b) other persons in active concert or participation with Defendant or 23 with anyone described in (a). 24 III. 25 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 26 Defendant is liable for disgorgement of $114,200.00, representing net profits gained 27 [net losses avoided] as a result of the conduct alleged in the Complaint, together with 28 prejudgment interest thereon in the amount of $18,825.00, and a civil penalty in the 3 1 amount of $27,162.00 pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 2 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant 3 shall satisfy this obligation by paying $160,187.00 to the Securities and Exchange 4 Commission within one year after entry of this Final Judgment. 5 Defendant may transmit payment electronically to the Commission, which will 6 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 7 be made directly from a bank account via Pay.gov through the SEC website at 8 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 9 check, bank cashier’s check, or United States postal money order payable to the 10 11 12 13 Securities and Exchange Commission, which shall be delivered or mailed to: Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 14 and shall be accompanied by a letter identifying the case title, civil action number, 15 and name of this court; Robert A. Vanetten as a defendant in this action; and 16 specifying that payment is made pursuant to this Final Judgment. 17 Defendant shall simultaneously transmit photocopies of evidence of payment and 18 case identifying information to the Commission’s counsel in this action. By making 19 this payment, Defendant relinquishes all legal and equitable right, title, and interest in 20 such funds and no part of the funds shall be returned to Defendant. 21 The Commission may enforce the court’s judgment for disgorgement and 22 prejudgment interest by using all collection procedures authorized by law, including, 23 but not limited to, moving for civil contempt at any time after 30 days following entry 24 of this Final Judgment. 25 The Commission may enforce the court’s judgment for penalties by the use of 26 all collection procedures authorized by law, including the Federal Debt Collection 27 Procedures Act, 28 U.S.C. § 3001 et seq., and moving for civil contempt for the 28 violation of any court orders issued in this action. Defendant shall pay post judgment 4 1 interest on any amounts due after 30 days of the entry of this Final Judgment pursuant 2 to 28 U.S.C. § 1961. The Commission shall hold the funds, together with any interest 3 and income earned thereon (collectively, the “Fund”), pending further order of the 4 court. 5 The Commission may propose a plan to distribute the Fund subject to the 6 court’s approval. Such a plan may provide that the Fund shall be distributed pursuant 7 to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. 8 The court shall retain jurisdiction over the administration of any distribution of the 9 Fund, and the Fund may only be disbursed pursuant to an Order of the court. 10 Regardless of whether any such Fair Fund distribution is made, amounts ordered to 11 be paid as civil penalties pursuant to this Judgment shall be treated as penalties paid 12 to the government for all purposes, including all tax purposes. To preserve the 13 deterrent effect of the civil penalty, Defendant shall not, after offset or reduction of 14 any award of compensatory damages in any Related Investor Action based on 15 Defendant’s payment of disgorgement in this action, argue that he is entitled to, nor 16 shall he further benefit by, offset or reduction of such compensatory damages award 17 by the amount of any part of Defendant’s payment of a civil penalty in this action 18 (“Penalty Offset”). If the court in any Related Investor Action grants such a Penalty 19 Offset, Defendant shall, within 30 days after entry of a final order granting the 20 Penalty Offset, notify the Commission’s counsel in this action and pay the amount of 21 the Penalty Offset to the United States Treasury or to a Fair Fund, as the Commission 22 directs. Such a payment shall not be deemed an additional civil penalty and shall not 23 be deemed to change the amount of the civil penalty imposed in this Judgment. For 24 purposes of this paragraph, a “Related Investor Action” means a private damages 25 action brought against Defendant by or on behalf of one or more investors based on 26 substantially the same facts as alleged in the Complaint in this action. 27 /// 28 /// 5 1 IV. 2 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for 3 purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 4 11 U.S.C. § 523, the allegations in the complaint are true and admitted by Defendant, 5 and further, any debt for disgorgement, prejudgment interest, civil penalty or other 6 amounts due by Defendant under this Final Judgment or any other judgment, order, 7 consent order, decree or settlement agreement entered in connection with this 8 proceeding, is a debt for the violation by Defendant of the federal securities laws or 9 any regulation or order issued under such laws, as set forth in Section 523(a)(19) of 10 the Bankruptcy Code, 11 U.S.C. § 523(a)(19). 11 V. 12 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this court 13 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 14 Final Judgment. 15 VI. 16 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 17 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith 18 and without further notice. 19 20 Dated: May 9, 2022 21 FERNANDO L. AENLLE-ROCHA United States District Judge 22 23 24 25 26 27 28 6