Securities and Exchange Commission v. Emilio Francisco et al, No. 8:2016cv02257 - Document 400 (C.D. Cal. 2021)
Court Description: FINAL JUDGMENT by Judge Cormac J. Carney. AS TO PDC CAPITAL GROUP, LLC; CAFFE PRIMO INTERNATIONAL, INC.; SAL CARMICHAEL, LP; SAL CITRUS HEIGHTS, LP; SAL KERN CANYON, LP; SAL ASSISTED LIVING, LP; SAL WESTGATE, LP; SAL PHOENIX, LP; TRC TUCSON, LP; SUM MERPLACE AT SARASOTA, LP; SUMMERPLACE AT CLEARWATER, LP; SUMMERPLACE AT CORRELL PALMS, LP; CLEAR CURRENTS WEST, LP; CAFFE PRIMO MANAGEMENT, LP; CAFFE PRIMO MANAGEMENT 102, LP; CAFFE PRIMO MANAGEMENT 103, LP; CAFFE PRIMO MANAGEMENT 104, LP; CAFFE PRIM O MANAGEMENT 105, LP; CAFFE PRIMO MANAGEMENT 106, LP; CAFFE PRIMO MANAGEMENT 107, LP; AND CAFFE PRIMO MANAGEMENT 108, LP. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Receivership Defendants, jointly and severally, are liable for disgorg ement of $60,703,000, which will be deemed satisfied by the Receivers collection and distribution of receivership funds. The SEC forgoes prejudgment interest on the disgorgement amount and a civil penalty. Related to: Stipulation for Settlement 399 . (MD JS-6, Case Terminated). (twdb)
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Securities and Exchange Commission v. Emilio Francisco et al Doc. 400 Case 8:16-cv-02257-CJC-DFM Document 400 Filed 09/01/21 Page 1 of 5 Page ID #:12157 1 JS-6 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 SECURITIES AND EXCHANGE COMMISSION, 12 Plaintiff, 13 14 15 16 17 18 19 20 21 22 23 24 vs. EMILIO FRANCISCO, et al,, Defendants. Case No. 8:16-cv-02257-CJC-DFM FINAL JUDGMENT AS TO PDC CAPITAL GROUP, LLC; CAFFE PRIMO INTERNATIONAL, INC.; SAL CARMICHAEL, LP; SAL CITRUS HEIGHTS, LP; SAL KERN CANYON, LP; SAL ASSISTED LIVING, LP; SAL WESTGATE, LP; SAL PHOENIX, LP; TRC TUCSON, LP; SUMMERPLACE AT SARASOTA, LP; SUMMERPLACE AT CLEARWATER, LP; SUMMERPLACE AT CORRELL PALMS, LP; CLEAR CURRENTS WEST, LP; CAFFE PRIMO MANAGEMENT, LP; CAFFE PRIMO MANAGEMENT 102, LP; CAFFE PRIMO MANAGEMENT 103, LP; CAFFE PRIMO MANAGEMENT 104, LP; CAFFE PRIMO MANAGEMENT 105, LP; CAFFE PRIMO MANAGEMENT 106, LP; CAFFE PRIMO MANAGEMENT 107, LP; AND CAFFE PRIMO MANAGEMENT 108, LP 25 26 27 28 Dockets.Justia.com Case 8:16-cv-02257-CJC-DFM Document 400 Filed 09/01/21 Page 2 of 5 Page ID #:12158 1 The Securities and Exchange Commission having filed a First Amended 2 Complaint and Defendants PDC Capital Group, LLC; Caffe Primo International, Inc.; 3 SAL Carmichael, LP; SAL Citrus Heights, LP; SAL Kern Canyon, LP; SAL Assisted 4 Living, LP; SAL Westgate, LP; SAL Phoenix, LP; TRC Tucson, LP; Summerplace at 5 Sarasota, LP; Summerplace at Clearwater, LP; Summerplace at Correll Palms, LP; 6 Clear Currents West, LP; Caffe Primo Management, LP; Caffe Primo Management 7 102, LP; Caffe Primo Management 103, LP; Caffe Primo Management 104, LP; Caffe 8 Primo Management 105, LP; Caffe Primo Management 106, LP; Caffe Primo 9 Management 107, LP; and Caffe Primo Management 108, LP (collectively 10 “Receivership Defendants”) having entered a general appearance; consented to the 11 Court’s jurisdiction over Receivership Defendants and the subject matter of this action; 12 consented to entry of this Final Judgment without admitting or denying the allegations 13 of the First Amended Complaint (except as to jurisdiction); waived findings of fact and 14 conclusions of law; and waived any right to appeal from this Final Judgment: 15 I. 16 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Receivership 17 Defendants, and each of them, are permanently restrained and enjoined from violating, 18 directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 (the 19 “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 20 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or 21 of the mails, or of any facility of any national securities exchange, in connection with 22 the purchase or sale of any security: 23 (a) to employ any device, scheme, or artifice to defraud; 24 (b) to make any untrue statement of a material fact or to omit to state a 25 material fact necessary in order to make the statements made, in the light 26 of the circumstances under which they were made, not misleading; or 27 28 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 1 Case 8:16-cv-02257-CJC-DFM Document 400 Filed 09/01/21 Page 3 of 5 Page ID #:12159 1 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided 2 in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the 3 following who receive actual notice of this Final Judgment by personal service or 4 otherwise: (a) any of Receivership Defendants’ officers, agents, servants, employees, 5 and attorneys; and (b) other persons in active concert or participation with any of 6 Receivership Defendants or with anyone described in (a). 7 II. 8 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 9 Receivership Defendants, and each of them, are permanently restrained and enjoined 10 from violating Section 17(a) of the Securities Act of 1933 (the “Securities Act”) [15 11 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or 12 instruments of transportation or communication in interstate commerce or by use of the 13 mails, directly or indirectly: 14 (a) to employ any device, scheme, or artifice to defraud; 15 (b) to obtain money or property by means of any untrue statement of a 16 material fact or any omission of a material fact necessary in order to make 17 the statements made, in light of the circumstances under which they were 18 made, not misleading; or 19 (c) 20 operates or would operate as a fraud or deceit upon the purchaser. 21 to engage in any transaction, practice, or course of business which IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided 22 in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the 23 following who receive actual notice of this Final Judgment by personal service or 24 otherwise: (a) any of Receivership Defendants’ officers, agents, servants, employees, 25 and attorneys; and (b) other persons in active concert or participation with any of 26 Receivership Defendants or with anyone described in (a). 27 28 III. IT IS FURTHER ORDERED that Receivership Defendants, and each of them, 2 Case 8:16-cv-02257-CJC-DFM Document 400 Filed 09/01/21 Page 4 of 5 Page ID #:12160 1 are permanently restrained and enjoined from, directly or indirectly, including but not 2 limited to, through an entity owned or controlled by any Receivership Defendant, 3 participating in the issuance, purchase, offer, or sale of any security. 4 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided 5 in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the 6 following who receive actual notice of this Final Judgment by personal service or 7 otherwise: (a) any of Receivership Defendants’ officers, agents, servants, employees, 8 and attorneys; and (b) other persons in active concert or participation with any of 9 Receivership Defendants or with anyone described in (a). 10 11 IV. IT IS FURTHER ORDERED that Receivership Defendants, and each of them, 12 are permanently restrained and enjoined from, directly or indirectly, participating in the 13 offer or sale of any security which constitutes an investment in a “commercial 14 enterprise” under the United States Government EB-5 visa program administered by 15 the United States Citizenship and Immigration Service (“USCIS”), including engaging 16 in activities with a broker, dealer, or issuer, or a Regional Center designated by the 17 USCIS, for purposes of issuing, offering, trading, or inducing or attempting to induce 18 the purchase or sale of any such EB-5 investment. 19 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided 20 in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the 21 following who receive actual notice of this Final Judgment by personal service or 22 otherwise: (a) any of Receivership Defendants’ officers, agents, servants, employees, 23 and attorneys; and (b) other persons in active concert or participation with any of 24 Receivership Defendants or with anyone described in (a). 25 26 V. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 27 Receivership Defendants, jointly and severally, are liable for disgorgement of 28 $60,703,000, which will be deemed satisfied by the Receiver’s collection and 3 Case 8:16-cv-02257-CJC-DFM Document 400 Filed 09/01/21 Page 5 of 5 Page ID #:12161 1 distribution of receivership funds. The SEC forgoes prejudgment interest on the 2 disgorgement amount and a civil penalty. 3 4 VI. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent 5 is incorporated herein with the same force and effect as if fully set forth herein, and 6 that Receivership Defendants shall comply with all of the undertakings and agreements 7 set forth therein. 8 9 VII. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 10 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 11 Final Judgment. 12 13 VIII. There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules 14 of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and 15 without further notice. 16 17 Dated: September 1, 2021 HON. CORMAC J. CARNEY UNITED STATES DISTRICT JUDGE 18 19 20 21 22 23 CC: FISCAL 24 25 26 27 28 4
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