Securities and Exchange Commission v. Wayland et al, No. 8:2017cv01156 - Document 77 (C.D. Cal. 2019)

Court Description: FINAL JUDGMENT AS TO C.A.R. LEASING, LLC by Judge Andrew J. Guilford, IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities E xchange Act of 1934 (the "ExchangeAct") [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security: SEE DOCUMENT FOR FURTHER DETAILS. (es)

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Securities and Exchange Commission v. Wayland et al Doc. 77 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 SOUTHERN DIVISION 11 12 13 14 SECURITIES AND EXCHANGE COMMISSION, 15 16 17 18 19 20 21 22 23 Plaintiff, Case No. 8:17-cv-01156-AG (DFMx) FINAL JUDGMENT AS TO C.A.R. LEASING, LLC vs. CAROL J. WAYLAND, JOHN C. MUELLER, KENTUCKYTENNESSEE 50 WELLS/400 BBLPD BLOCK, LIMITED PARTNERSHIP, HP OPERATIONS, LLC, C.A.R. LEASING, LLC, MITCHELL B. DOW, BARRY LISS, AND STEVE G. BLASKO, Defendants. 24 25 26 27 28 Dockets.Justia.com 1 This matter came before the Court upon Plaintiff Securities and Exchange 2 Commission’s (“SEC”) Motion for Summary Judgment against defendants Kentucky- 3 Tennessee 50 Wells/400 BBLPD Block, Limited Partnership, HP Operations, LLC, 4 C.A.R. Leasing, LLC, Carol J. Wayland, Mitchell B. Dow, Barry Liss, and Steve G. 5 Blasko, made pursuant to Federal Rule of Civil Procedure 56. The Court having 6 considered the memoranda and evidence filed by the parties, and all other argument 7 and evidence presented to it, and good cause appearing therefor, granted the SEC’s 8 Motion on April 8, 2019. 9 On April 18, 2019, the SEC submitted a Supplemental Memorandum of Points 10 and Authorities in support of its motion for permanent injunctions and civil penalties. 11 The Court having considered the memoranda and evidence submitted by the SEC, 12 and all other argument and evidence presented to it, and good cause appearing 13 therefor, grants the SEC’s Motion and enters this Final Judgment as to C.A.R. 14 Leasing, LLC (“Defendant”). I. 15 16 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 17 Defendant is permanently restrained and enjoined from violating, directly or 18 indirectly, Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange 19 Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. 20 § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the 21 mails, or of any facility of any national securities exchange, in connection with the 22 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 of the 26 circumstances under which they were made, not misleading; or 27 (c) 28 would operate as a fraud or deceit upon any person. to engage in any act, practice, or course of business which operates or 1 1 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 2 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 3 binds the following who receive actual notice of this Final Judgment by personal 4 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 5 attorneys; and (b) other persons in active concert or participation with Defendant or 6 with anyone described in (a). II. 7 8 9 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 17(a)(1) and 10 (3) of the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)(1) and 11 (3)] in the offer or sale of any security by the use of any means or instruments of 12 transportation or communication in interstate commerce or by use of the mails, 13 directly or indirectly: 14 (a) to employ any device, scheme, or artifice to defraud; or 15 (b) to engage in any transaction, practice, or course of business which 16 operates or would operate as a fraud or deceit upon the purchaser. 17 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 18 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 19 binds the following who receive actual notice of this Final Judgment by personal 20 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 21 attorneys; and (b) other persons in active concert or participation with Defendant or 22 with anyone described in (a). III. 23 24 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 25 Defendant is permanently restrained and enjoined from violating Section 5 of the 26 Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any 27 applicable exemption: 28 (a) Unless a registration statement is in effect as to a security, making use of 2 1 any means or instruments of transportation or communication in 2 interstate commerce or of the mails to sell such security through the use 3 or medium of any prospectus or otherwise; 4 (b) Unless a registration statement is in effect as to a security, carrying or 5 causing to be carried through the mails or in interstate commerce, by any 6 means or instruments of transportation, any such security for the purpose 7 of sale or for delivery after sale; or 8 (c) Making use of any means or instruments of transportation or 9 communication in interstate commerce or of the mails to offer to sell or 10 offer to buy through the use or medium of any prospectus or otherwise 11 any security, unless a registration statement has been filed with the 12 Commission as to such security, or while the registration statement is the 13 subject of a refusal order or stop order or (prior to the effective date of 14 the registration statement) any public proceeding or examination under 15 Section 8 of the Securities Act [15 U.S.C. § 77h]. 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) Defendant’s officers, agents, servants, employees, and 20 attorneys; and (b) other persons in active concert or participation with Defendant or 21 with anyone described in (a). IV. 22 23 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 24 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 25 Final Judgment. 26 V. 27 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 28 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith 3 1 and without further notice. 2 Dated: May 7, 2019 3 4 ____________________________________ _______________ ______________________ _ HON. ANDREW W J. J. GUILFORD UNITED STATES DISTRICT JUDGE 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4

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