Securities and Exchange Commission v. Justin Samuel Cary, No. 8:2017cv01649 - Document 16 (C.D. Cal. 2018)
Court Description: FINAL JUDGMENT as to Defendant Justin Samuel Gary 15 by Judge David O. Carter: See document for further information. (MD JS-6, Case Terminated). (lwag)
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Securities and Exchange Commission v. Justin Samuel Cary Doc. 16 JS-6 1 2 3 4 5 6 7 GARY Y. LEUNG (Cal. Bar No. 302928) Email: leungg@sec.gov TODD S. BRILLIANT (Cal. Bar No. 147727) Email: brilliantt@sec.gov Attorneys for Plaintiff Securities and Exchange Commission Michele Wein Layne, Regional Director Alka N. Patel, Associate Regional Director Amy J. Longo, Regional Trial Counsel 444 S. Flower Street, Suite 900 Los Angeles, California 90071 Telephone: (323) 965-3998 Facsimile: (213) 443-1904 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 Southern Division 11 12 13 14 SECURITIES AND EXCHANGE COMMISSION, 15 Plaintiff, 16 17 18 vs. Case No. 8:17-cv-01649-DOC-JCG FINAL JUDGMENT AS TO DEFENDANT JUSTIN SAMUEL CARY [15] JUSTIN SAMUEL CARY, Defendant. 19 20 21 22 23 24 25 26 27 28 FINAL JUDGMENT 1 Dockets.Justia.com 1 The Securities and Exchange Commission having filed a Complaint and 2 Defendant Justin Samuel Cary (“Defendant”) having entered a general appearance; 3 consented to the Court’s jurisdiction over Defendant and the subject matter of this 4 action; consented to entry of this Final Judgment without admitting or denying the 5 allegations of the Complaint (except as to jurisdiction and except as otherwise 6 provided herein in paragraph VI); waived findings of fact and conclusions of law; and 7 waived any right to appeal from this Final Judgment: 8 9 I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 10 permanently restrained and enjoined from violating, directly or indirectly, Section 11 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. § 12 78j(b), and Rule 10b-5 promulgated thereunder, 17 C.F.R. § 240.10b-5, by using any 13 means or instrumentality of interstate commerce, or of the mails, or of any facility of 14 any national securities exchange, in connection with the purchase or sale of any 15 security: 16 (a) to employ any device, scheme, or artifice to defraud; 17 (b) to make any untrue statement of a material fact or to omit to state a 18 material fact necessary in order to make the statements made, in the light 19 of the circumstances under which they were made, not misleading; or 20 21 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 22 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 23 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 24 binds the following who receive actual notice of this Final Judgment by personal 25 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 26 attorneys; and (b) other persons in active concert or participation with Defendant or 27 with anyone described in (a). 28 FINAL JUDGMENT 2 1 2 II. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant 3 to Section 21(d)(2) of the Exchange Act, 15 U.S.C. § 78u(d)(2), and/or Section 20(e) 4 of the Securities Act, 15 U.S.C. § 77t(e), Defendant is prohibited, for five years 5 following the date of entry of this Final Judgment, from acting as an officer or 6 director of any issuer that has a class of securities registered pursuant to Section 12 of 7 the Exchange Act, 15 U.S.C. § 78l, or that is required to file reports pursuant to 8 Section 15(d) of the Exchange Act, 15 U.S.C. § 78o(d). 9 10 III. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 11 is liable for disgorgement of $8,140.25, representing profits gained as a result of the 12 conduct alleged in the Complaint, together with prejudgment interest thereon in the 13 amount of $514.78, and a civil penalty in the amount of $8,140.25 pursuant to 14 Section 21(d) and Section 21A of the Exchange Act, 15 U.S.C. §§ 78u(d), 78u-1. 15 Defendant shall satisfy this obligation by paying $16,795.28 to the Securities and 16 Exchange Commission pursuant to the terms of the payment schedule set forth in 17 paragraph IV below after entry of this Final Judgment. 18 Defendant may transmit payment electronically to the Commission, which will 19 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 20 be made directly from a bank account via Pay.gov through the SEC website at 21 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 22 check, bank cashier’s check, or United States postal money order payable to the 23 Securities and Exchange Commission, which shall be delivered or mailed to 24 Enterprise Services Center 25 Accounts Receivable Branch 26 6500 South MacArthur Boulevard 27 Oklahoma City, OK 73169 28 FINAL JUDGMENT 3 1 and shall be accompanied by a letter identifying the case title, civil action number, 2 and name of this Court; Justin Samuel Cary as a defendant in this action; and 3 specifying that payment is made pursuant to this Final Judgment. 4 Defendant shall simultaneously transmit photocopies of evidence of payment 5 and case identifying information to the Commission’s counsel in this action. By 6 making this payment, Defendant relinquishes all legal and equitable right, title, and 7 interest in such funds and no part of the funds shall be returned to Defendant. The 8 Commission shall send the funds paid pursuant to this Final Judgment to the United 9 States Treasury. 10 The Commission may enforce the Court’s judgment for disgorgement and 11 prejudgment interest by moving for civil contempt (and/or through other collection 12 procedures authorized by law) at any time after 14 days following entry of this Final 13 Judgment. Defendant shall pay post judgment interest on any delinquent amounts 14 pursuant to 28 U.S.C. § 1961. 15 16 IV. Justin Samuel Cary shall pay the total of disgorgement, prejudgment interest, 17 and penalty (name as applicable) due of $16,795.28 in 2 installments to the 18 Commission according to the following schedule: (1) $8,655.03, within 14 days of 19 entry of this Final Judgment; (2) $8,140.25, within 365 days of entry of this Final 20 Judgment. Payments shall be deemed made on the date they are received by the 21 Commission and shall be applied first to post judgment interest, which accrues 22 pursuant to 28 U.S.C. § 1961 on any unpaid amounts due after 14 days of the entry of 23 Final Judgment. Prior to making the final payment set forth herein, Justin Samuel 24 Cary shall contact the staff of the Commission for the amount due for the final 25 payment. 26 If Justin Samuel Cary fails to make any payment by the date agreed and/or in 27 the amount agreed according to the schedule set forth above, all outstanding 28 payments under this Final Judgment, including post-judgment interest, minus any FINAL JUDGMENT 4 1 payments made, shall become due and payable immediately at the discretion of the 2 staff of the Commission without further application to the Court. 3 4 V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 5 Consent is incorporated herein with the same force and effect as if fully set forth 6 herein, and that Defendant shall comply with all of the undertakings and agreements 7 set forth therein. 8 VI. 9 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for 10 purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 11 U.S.C. §523, the allegations in the complaint are true and admitted by Defendant, 12 and further, any debt for disgorgement, prejudgment interest, civil penalty or other 13 amounts due by Defendant under this Final Judgment or any other judgment, order, 14 consent order, decree or settlement agreement entered in connection with this 15 proceeding, is a debt for the violation by Defendant of the federal securities laws or 16 any regulation or order issued under such laws, as set forth in Section 523(a)(19) of 17 the Bankruptcy Code, 11 U.S.C. §523(a)(19). 18 VII. 19 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 20 shall retain jurisdiction of this matter for the purposes of enforcing the terms of this 21 Final Judgment. 22 23 January 5, 2018 Dated: ___________ 24 25 _______________________________ UNITED STATES DISTRICT JUDGE DAVID O. CARTER 26 27 28 FINAL JUDGMENT 5
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