Securities and Exchange Commission v. Medical Capital Holdings Inc et al, No. 8:2009cv00818 - Document 1373 (C.D. Cal. 2016)
Court Description: FINAL JUDGMENT AS TO MEDICAL CAPITAL HOLDINGS, INC., MEDICAL CAPITAL CORPORATION, AND MEDICAL PROVIDER FUNDING CORPORATION VI by Judge David O. Carter (mt)
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Securities and Exchange Commission v. Medical Capital Holdings Inc et al Doc. 1373 1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA SOUTHERN DIVISION 8 9 10 SECURITIES AND EXCHANGE COMMISSION, 11 Plaintiff, 12 15 MEDICAL CAPITAL HOLDINGS, INC.; MEDICAL CAPITAL CORPORATION; MEDICAL PROVIDER FUNDING CORPORATION VI; SIDNEY M. FIELD; and JOSEPH J. LAMPARIELLO, 16 Case No. SACV 09-818 DOC (RNBx) FINAL JUDGMENT AS TO MEDICAL CAPITAL HOLDINGS, INC., MEDICAL CAPITAL CORPORATION, AND MEDICAL PROVIDER FUNDING CORPORATION VI Defendants. 13 14 17 18 19 20 21 22 23 24 25 26 27 28 Dockets.Justia.com 1 The Securities and Exchange Commission (“SEC”) having filed a Complaint, 2 First Amended Complaint, and Second Amended Complaint, and Defendants 3 Medical Capital Holdings, Inc. (“MCHI”), Medical Capital Corporation (“MCC”), 4 and Medical Provider Funding Corporation VI (“MP VI”) (collectively 5 “Defendants”), having entered a general appearance; consented to the Court’s 6 jurisdiction over Defendants and the subject matter of this action; consented to entry 7 of this Final Judgment without admitting or denying the allegations of the Second 8 Amended Complaint (except as to jurisdiction), waived findings of fact and 9 conclusions of law; waived any right to appeal from this Final Judgment. I. 10 11 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants 12 are permanently restrained and enjoined from violating, directly or indirectly, Section 13 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. § 14 78j(b), and Rule 10b-5 promulgated thereunder, 17 C.F.R. § 240.10b-5, by using any 15 means or instrumentality of interstate commerce, or of the mails, or of any facility of 16 any national securities exchange, in connection with the purchase or sale of any 17 security: 18 (a) to employ any device, scheme, or artifice to defraud; 19 (b) to make any untrue statement of a material fact or to omit to state a 20 material fact necessary in order to make the statements made, in the light 21 of the circumstances under which they were made, not misleading; or 22 23 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 24 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 25 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 26 binds the following who receive actual notice of this Final Judgment by personal 27 service or otherwise: (a) Defendants’ officers, agents, servants, employees, and 28 1 1 attorneys; and (b) other persons in active concert or participation with Defendants or 2 with anyone described in (a). II. 3 4 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 5 Defendants are permanently restrained and enjoined from violating Section 17(a) of 6 the Securities Act of 1933 (“Securities Act”), 15 U.S.C. § 77q(a), in the offer or sale 7 of any security by the use of any means or instruments of transportation or 8 communication in interstate commerce or by use of the mails, directly or indirectly: 9 (a) to employ any device, scheme, or artifice to defraud; 10 (b) to obtain money or property by means of any untrue statement of a 11 material fact or any omission of a material fact necessary in order to 12 make the statements made, in light of the circumstances under which 13 they were made, not misleading; or 14 15 (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. 16 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 17 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 18 binds the following who receive actual notice of this Final Judgment by personal 19 service or otherwise: (a) Defendants’ officers, agents, servants, employees, and 20 attorneys; and (b) other persons in active concert or participation with Defendants or 21 with anyone described in (a). 22 23 III. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 24 Defendant MCC is permanently restrained and enjoined from aiding and abetting any 25 violation of Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5 26 promulgated thereunder, 17 C.F.R. § 240.10b-5, by knowingly or recklessly 27 providing substantial assistance to an issuer that uses any means or instrumentality of 28 2 1 interstate commerce, or of the mails, or of any facility of any national securities 2 exchange, in connection with the purchase or sale of any security: 3 (a) to employ any device, scheme, or artifice to defraud; 4 (b) to make any untrue statement of a material fact or to omit to state a 5 material fact necessary in order to make the statements made, in the light 6 of the circumstances under which they were made, not misleading; or 7 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 8 9 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 10 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 11 binds the following who receive actual notice of this Final Judgment by personal 12 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 13 attorneys; and (b) other persons in active concert or participation with Defendant or 14 with anyone described in (a). IV. 15 16 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 17 Defendant shall pay disgorgement of $831,130,893.00, which disgorgement amount 18 is deemed satisfied by the distributions made by the Receiver to the investors in this 19 proceeding. V. 20 21 22 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that the SEC is has determined to forego seeking a civil penalty against Defendants. VI. 23 24 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 25 the Consent is incorporated herein with the same force and effect as if fully set forth 26 herein, and that Defendants shall comply with all of the undertakings and agreements 27 set forth therein. 28 3 1 2 VII. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 3 this Court shall retain jurisdiction of this matter for the purposes of enforcing the 4 terms of this Final Judgment. 5 VIII. 6 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 7 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith 8 and without further notice. 9 10 11 Dated: 08/19/2016 ____________________________________ HONORABLE DAVID O. CARTER UNITED STATES DISTRICT JUDGE 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4
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