Securities and Exchange Commission v. Wayland et al, No. 8:2017cv01156 - Document 80 (C.D. Cal. 2019)

Court Description: FINAL JUDGMENT AS TO KENTUCKY-TENNESSEE 50 WELLS/400 BBLPD BLOCK, LIMITED PARTNERSHIP by Judge Andrew J. Guilford. The Court having considered the memoranda and evidence submitted by the SEC, and all other argument and evidence presented to it, and good cause appearing therefor, grants the SEC's Motion and enters this Final Judgment as to Kentucky-Tennessee 50 Wells/400 BBLPD Block, Limited Partnership ("Defendant"). IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. (SEE DOCUMENT FOR FURTHER DETAILS) (es)

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Securities and Exchange Commission v. Wayland et al Doc. 80 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, vs. Case No. 8:17-cv-01156-AG (DFMx) FINAL JUDGMENT AS TO KENTUCKY-TENNESSEE 50 WELLS/400 BBLPD BLOCK, LIMITED PARTNERSHIP 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 Kentucky- 14 Tennessee 50 Wells/400 BBLPD Block, Limited Partnership (“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 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 9 Defendant is permanently restrained and enjoined from violating Section 17(a) of the 10 Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale 11 of any security by the use of any means or instruments of transportation or 12 communication in interstate commerce or by use of the mails, directly or indirectly: 13 (a) to employ any device, scheme, or artifice to defraud; 14 (b) to obtain money or property by means of any untrue statement of a 15 material fact or any omission of a material fact necessary in order to make the 16 statements made, in light of the circumstances under which they were made, 17 not misleading; or 18 (c) 19 operates or would operate as a fraud or deceit upon the purchaser. 20 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 21 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 22 binds the following who receive actual notice of this Final Judgment by personal 23 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 24 attorneys; and (b) other persons in active concert or participation with Defendant or 25 with anyone described in (a). 26 27 28 to engage in any transaction, practice, or course of business which III. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 5 of the 2 1 Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any 2 applicable exemption: 3 (a) Unless a registration statement is in effect as to a security, making use of 4 any means or instruments of transportation or communication in 5 interstate commerce or of the mails to sell such security through the use 6 or medium of any prospectus or otherwise; 7 (b) Unless a registration statement is in effect as to a security, carrying or 8 causing to be carried through the mails or in interstate commerce, by any 9 means or instruments of transportation, any such security for the purpose of sale or for delivery after sale; or 10 11 (c) Making use of any means or instruments of transportation or 12 communication in interstate commerce or of the mails to offer to sell or 13 offer to buy through the use or medium of any prospectus or otherwise 14 any security, unless a registration statement has been filed with the 15 Commission as to such security, or while the registration statement is the 16 subject of a refusal order or stop order or (prior to the effective date of 17 the registration statement) any public proceeding or examination under 18 Section 8 of the Securities Act [15 U.S.C. § 77h]. 19 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 20 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 21 binds the following who receive actual notice of this Final Judgment by personal 22 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 23 attorneys; and (b) other persons in active concert or participation with Defendant or 24 with anyone described in (a). IV. 25 26 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 27 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 28 Final Judgment. 3 1 V. 2 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 3 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith 4 and without further notice. 5 6 7 8 Dated: May 7, 2019 ____________________________________ _______________ ______________________ _ HON. ANDREW JJ.. GUILFORD GUILFORD UNITED STATES DISTRICT JUDGE 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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