Securities and Exchange Commission v. Paul A. Garcia et al, No. 8:2017cv00174 - Document 11 (C.D. Cal. 2017)

Court Description: FINAL JUDGMENT AS TO DEFENDANT CALIBER PARTNERSHIP I, LLC by Judge Cormac J. Carney, re consent 5 .(see document for details). (MD JS-6, Case Terminated). (dro)

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Securities and Exchange Commission v. Paul A. Garcia et al Doc. 11 1 2 3 4 5 JS-6 6 7 8 9 10 11 UNITED STATES DISTRICT COURT 12 CENTRAL DISTRICT OF CALIFORNIA 13 SOUTHERN DIVISION 14 15 16 SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 17 18 19 20 21 22 vs. Case No. 8:17-cv-00174 FINAL JUDGMENT AS TO DEFENDANT CALIBER PARTNERSHIP I, LLC PAUL A. GARCIA, CALIBER CAPITAL MANAGEMENT, LLC, PARTNER MEDICAL SOLUTIONS, LLC, RICHARD T. WOODS, and CALIBER PARTNERSHIP I, LLC, Defendants, and 23 24 25 ACER CAPITAL GROUP, INC. and GREENEONE.COM, INC., Relief Defendants. 26 27 28 FINAL JUDGMENT AS TO CALIBER PARTNERSHIP I, LLC 1 CASE NO. 8:17-cv-00174 Dockets.Justia.com 1 2 3 FINAL JUDGMENT 4 The Securities and Exchange Commission having filed a Complaint and 5 Defendant Caliber Partnership I, LLC (“Caliber” or “Defendant”) having entered a 6 general appearance; consented to the Court’s jurisdiction over Defendant and the 7 subject matter of this action; consented to entry of this Final Judgment without 8 admitting or denying the allegations of the Complaint (except as to jurisdiction); 9 waived findings of fact and conclusions of law; and waived any right to appeal from 10 this Final Judgment: 11 I. 12 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Caliber is 13 permanently restrained and enjoined from violating, directly or indirectly, Section 14 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 15 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using 16 any means or instrumentality of interstate commerce, or of the mails, or of any 17 facility of any national securities exchange, in connection with the purchase or sale of 18 any security: 19 (a) to employ any device, scheme, or artifice to defraud; 20 (b) to make any untrue statement of a material fact or to omit to state a 21 material fact necessary in order to make the statements made, in the light of the 22 circumstances under which they were made, not misleading; or 23 (c) 24 would operate as a fraud or deceit upon any person. 25 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 26 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 27 binds the following who receive actual notice of this Final Judgment by personal 28 service or otherwise: (a) Caliber’s officers, agents, servants, employees, and to engage in any act, practice, or course of business which operates or FINAL JUDGMENT AS TO CALIBER PARTNERSHIP I, LLC 2 CASE NO. 8:17-cv-00174 1 attorneys; and (b) other persons in active concert or participation with Caliber or 2 anyone described in (a). II. 3 4 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 5 Caliber is permanently restrained and enjoined from violating Section 17(a) of the 6 Securities Act of 1933 (the “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 make the 12 statements made, in light of the circumstances under which they were made, 13 not misleading; or 14 (c) 15 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) Caliber’s officers, agents, servants, employees, and 20 attorneys; and (b) other persons in active concert or participation with Caliber or with 21 anyone described in (a). to engage in any transaction, practice, or course of business which III. 22 23 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 24 Caliber is permanently restrained and enjoined from violating Section 5 of the 25 Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any 26 applicable exemption: 27 28 (a) Unless a registration statement is in effect as to a security, making use of any means or instruments of transportation or communication in FINAL JUDGMENT AS TO CALIBER PARTNERSHIP I, LLC 3 CASE NO. 8:17-cv-00174 1 interstate commerce or of the mails to sell such security through the use 2 or medium of any prospectus or otherwise; 3 (b) Unless a registration statement is in effect as to a security, carrying or 4 causing to be carried through the mails or in interstate commerce, by any 5 means or instruments of transportation, any such security for the purpose 6 of sale or for delivery after sale; or 7 (c) Making use of any means or instruments of transportation or 8 communication in interstate commerce or of the mails to offer to sell or 9 offer to buy through the use or medium of any prospectus or otherwise 10 any security, unless a registration statement has been filed with the 11 Commission as to such security, or while the registration statement is the 12 subject of a refusal order or stop order or (prior to the effective date of 13 the registration statement) any public proceeding or examination under 14 Section 8 of the Securities Act [15 U.S.C. § 77h]. 15 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 16 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 17 binds the following who receive actual notice of this Final Judgment by personal 18 service or otherwise: (a) Caliber’s officers, agents, servants, employees, and 19 attorneys; and (b) other persons in active concert or participation with Caliber or with 20 anyone described in (a). IV. 21 22 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 23 Defendant is liable for disgorgement of $545,000, representing ill-gotten gains from 24 the conduct alleged in the Complaint, together with prejudgment interest thereon in 25 the amount of $25,298, for a total of $570,298. Defendant shall satisfy this obligation 26 by paying $570,298 to the Securities and Exchange Commission within 14 days after 27 entry of this Final Judgment. 28 Defendant may transmit payment electronically to the Commission, which will FINAL JUDGMENT AS TO CALIBER PARTNERSHIP I, LLC 4 CASE NO. 8:17-cv-00174 1 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 2 be made directly from a bank account via Pay.gov through the SEC website at 3 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 4 check, bank cashier’s check, or United States postal money order payable to the 5 Securities and Exchange Commission, which shall be delivered or mailed to 6 Enterprise Services Center 7 Accounts Receivable Branch 8 6500 South MacArthur Boulevard 9 Oklahoma City, OK 73169 10 and shall be accompanied by a letter identifying the case title, civil action number, 11 and name of this Court; Caliber as a defendant in this action; and specifying that 12 payment is made pursuant to this Final Judgment. 13 Defendant shall simultaneously transmit photocopies of evidence of payment 14 and case identifying information to the Commission’s counsel in this action. By 15 making this payment, Defendant relinquishes all legal and equitable right, title, and 16 interest in such funds and no part of the funds shall be returned to Defendant. 17 The Commission may propose a plan to distribute the funds paid pursuant to 18 this Final Judgment, together with any interest and income earned thereon 19 (collectively, the “Fund”) subject to the Court’s approval. Such a plan may provide 20 that the Fund shall be distributed pursuant to the Fair Fund provisions of Section 21 308(a) of the Sarbanes-Oxley Act of 2002. The Court shall retain jurisdiction over 22 the administration of any distribution of the Fund. If the Commission staff 23 determines that the Fund will not be distributed, the Commission shall send the funds 24 paid pursuant to this Final Judgment to the United States Treasury. 25 The Commission may enforce the Court’s judgment for disgorgement and 26 prejudgment interest by moving for civil contempt (and/or through other collection 27 procedures authorized by law) at any time after 14 days following entry of this Final 28 Judgment. Defendant shall pay post judgment interest on any delinquent amounts FINAL JUDGMENT AS TO CALIBER PARTNERSHIP I, LLC 5 CASE NO. 8:17-cv-00174 1 pursuant to 28 U.S.C. § 1961. 2 3 V. 4 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 5 the Consent of Defendant is incorporated herein with the same force and effect as if 6 fully set forth herein, and that Defendant shall comply with all of the undertakings 7 and agreements set forth therein. 8 9 VI. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 10 this Court shall retain jurisdiction of this matter for the purposes of enforcing the 11 terms of this Final Judgment. 12 VII. 13 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 14 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith 15 and without further notice. 16 17 Dated: February 7, 2017 18 ____________________________________ 19 UNITED STATES DISTRICT JUDGE 20 21 22 23 24 25 26 27 28 FINAL JUDGMENT AS TO CALIBER PARTNERSHIP I, LLC 6 CASE NO. 8:17-cv-00174 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 FINAL JUDGMENT AS TO CALIBER PARTNERSHIP I, LLC 7 CASE NO. 8:17-cv-00174

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