Securities and Exchange Commission v. Diverse Financial Corporation et al, No. 8:2015cv01746 - Document 140 (C.D. Cal. 2016)
Court Description: FINAL JUDGMENT AS TO DEFENDANT DIVERSE FINANCIAL CORPORATION by Judge Percy Anderson, Related to: Stipulation for Judgment 134 . (See document for specifics) (mrgo)
Download PDF
<![CDATA[
Securities and Exchange Commission v. Diverse Financial Corporation et al 1 2 3 4 5 6 7 8 Doc. 140 AMY JANE LONGO, Cal. Bar No. 198304 E-mail: LongoA@sec.gov LYNN M. DEAN, Cal. Bar. No. 205562 E-mail: DeanL@sec.gov MATTHEW T. MONTGOMERY, Cal. Bar No. 260149 E-mail: MontgomeryM@sec.gov Attorneys for Plaintiff Securities and Exchange Commission Michele Wein Layne, Regional Director John W. Berry, Regional Trial Counsel 444 South Flower Street, Suite 900 Los Angeles, California 90071-9591 Telephone: (323) 965-3998 Facsimile: (213) 443-1905 9 UNITED STATES DISTRICT COURT 10 CENTRAL DISTRICT OF CALIFORNIA 11 Western Division 12 13 SECURITIES AND EXCHANGE COMMISSION, Case No. 8:15-cv-01746-PA-KES 14 Plaintiff, FINAL JUDGMENT AS TO DEFENDANT DIVERSE FINANCIAL CORPORATION 15 16 vs. 17 DIVERSE FINANCIAL CORPORATION, ROY DEKEL, and DAVID KANDELL, 18 Defendants. The Honorable Percy Anderson 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 the Court having granted the SEC’s Motion for Summary Judgment and found 3 Defendant Diverse Financial Corporation (the “Defendant”) liable on all counts 4 asserted against it in the SEC’s Complaint, and Defendant Diverse Financial having 5 consented to entry of this Final Judgment; waived any further findings of fact and 6 conclusions of law; and waived any right to appeal from this Final Judgment: I. 7 8 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 9 permanently restrained and enjoined from violating, directly or indirectly, Section 10 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 11 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using 12 any means or instrumentality of interstate commerce, or of the mails, or of any 13 facility of any national securities exchange, in connection with the purchase or sale of 14 any security: 15 (a) to employ any device, scheme, or artifice to defraud; 16 (b) to make any untrue statement of a material fact or to omit to state a 17 material fact necessary in order to make the statements made, in the light of the 18 circumstances under which they were made, not misleading; or 19 (c) 20 would operate as a fraud or deceit upon any person. 21 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 22 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 23 binds the following who receive actual notice of this Final Judgment by personal 24 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 25 attorneys; and (b) other persons in active concert or participation with Defendant or 26 with anyone described in (a). to engage in any act, practice, or course of business which operates or 27 28 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). 20 21 to engage in any transaction, practice, or course of business which III. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 22 is liable, jointly and severally with Defendant Roy Dekel, for disgorgement of 23 $2,717,758.20, representing profits gained as a result of the conduct alleged in the 24 Complaint, together with prejudgment interest thereon in the amount of $108,023.57. 25 Defendant shall satisfy this obligation by paying $2,825,781.77 to the Securities and 26 Exchange Commission within 14 days after entry of this Final Judgment. 27 Defendant may transmit payment electronically to the SEC, 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; Diverse Financial’s name 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 SEC’s counsel in this action. By making this 14 payment, Defendant relinquishes all legal and equitable right, title, and interest in 15 such funds and no part of the funds shall be returned to Defendant. The SEC shall 16 send the funds paid pursuant to this Final Judgment to the United States Treasury. 17 The SEC may enforce the Court’s judgment for disgorgement and prejudgment 18 interest by moving for civil contempt (and/or through other collection procedures 19 authorized by law) at any time after 14 days following entry of this Final Judgment. 20 Defendant shall pay post judgment interest on any delinquent amounts pursuant to 28 21 U.S.C. § 1961. 22 23 IV. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 24 Consent is incorporated herein with the same force and effect as if fully set forth 25 herein, and that Defendant shall comply with all of the undertakings and agreements 26 set forth therein. The SEC staff may make reasonable requests for further evidence 27 of compliance, and Defendant agrees to provide such evidence. 28 3 1 2 V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 3 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 4 Final Judgment. 5 VI. 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: December 8, 2016 ____________________________________ UNITED STATES DISTRICT JUDGE 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4
]]>
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You
should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
