Securities and Exchange Commission v. Dale Scott Pearlman, No. 8:2019cv02108 - Document 13 (C.D. Cal. 2019)
Court Description: FINAL JUDGMENT as to Defendant Dale Scott Pearlman by Judge David O. Carter, in favor of Securities and Exchange Commission against Dale Scott Pearlman. Defendant is liable for disgorgement of $115,000.00; Prejudgment interest $13,392.99; Civil penalty $50,000.00. SEE DOCUMENT FOR FURTHER INFORMATION. Related to: Stipulation for Judgment 12 . MD JS-6, Case Terminated. (twdb)
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Securities and Exchange Commission v. Dale Scott Pearlman Doc. 13 JS-6 1 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA WESTERN DIVISION 2 3 4 5 SECURITIES AND EXCHANGE COMMISSION, Case No.: 8:19-cv-02108-DOC-ADS 6 Plaintiff, 7 8 9 10 11 12 13 vs. RICHARD JOHNATHAN EDEN, an individual; and CHRISTOPHER MICHAEL NEUMANN, an individual, Defendants. 14 FINAL JUDGMENT AS TO DEFENDANT DALE SCOTT PEARLMAN 15 The Securities and Exchange Commission having filed a Complaint and 16 Defendant Dale Scott Pearlman having entered a general appearance; consented to 17 the Court’s jurisdiction over Defendant and the subject matter of this action; 18 consented to entry of this Final Judgment without admitting or denying the 19 allegations of the Complaint (except as to jurisdiction and except as otherwise 20 provided herein in paragraph VI); waived findings of fact and conclusions of law; 21 and waived any right to appeal from this Final Judgment: 22 I. 23 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 24 is permanently restrained and enjoined from violating, directly or indirectly, Section 25 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 26 78j(b)] and Rule 10b 5 promulgated thereunder [17 C.F.R. § 240.10b 5], by using 27 any means or instrumentality of interstate commerce, or of the mails, or of any 28 1 Dockets.Justia.com 1 facility of any national securities exchange, in connection with the purchase or sale 2 of any security: 3 (a) to employ any device, scheme, or artifice to defraud; 4 (b) to make any untrue statement of a material fact or to omit to state a 5 material fact necessary in order to make the statements made, in the light of 6 the circumstances under which they were made, not misleading; or 7 (c) 8 would operate as a fraud or deceit upon any person. 9 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 10 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 11 binds the following who receive actual notice of this Judgment by personal service 12 or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; 13 and (b) other persons in active concert or participation with Defendant or with 14 anyone described in (a). to engage in any act, practice, or course of business which operates or 15 II. 16 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 17 Defendant is permanently restrained and enjoined from violating Section 17(a) of 18 the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or 19 sale of any security by the use of any means or instruments of transportation or 20 communication in interstate commerce or by use of the mails, directly or indirectly: 21 (a) to employ any device, scheme, or artifice to defraud; 22 (b) to obtain money or property by means of any untrue statement of a 23 material fact or any omission of a material fact necessary in order to make the 24 statements made, in light of the circumstances under which they were made, 25 not misleading; or 26 (c) 27 28 to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. 2 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 Judgment by personal service 4 or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; 5 and (b) other persons in active concert or participation with Defendant or with 6 anyone described in (a). 7 III. 8 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 9 is permanently restrained and enjoined from violating, directly or indirectly, Section 10 15(a)(1) of the Exchange Act [15 U.S.C. § 78o(a)(1)] by using any means or 11 instrumentality of interstate commerce, or of the mails, or of any facility of any 12 national securities exchange, to effect transactions in, or induce or attempt to induce 13 the purchase or sale of, securities while not registered with the Commission as a 14 broker or dealer or while not associated with an entity registered with the 15 Commission as a broker or dealer. 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 Judgment by personal service 19 or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; 20 and (b) other persons in active concert or participation with Defendant or with 21 anyone described in (a). 22 23 IV. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 24 is permanently restrained and enjoined from violating Section 5 of the Securities 25 Act of 1933 (“Securities Act”) [15 U.S.C. § 77e] by, directly or indirectly, in the 26 absence of any applicable exemption: 27 28 (a) unless a registration statement is in effect as to a security, 3 1 making use of any means or instruments of transportation or 2 communication in interstate commerce or of the mails to sell 3 such security through the use or medium of any prospectus or 4 otherwise; 5 (b) unless a registration statement is in effect as to a security, 6 carrying or causing to be carried through the mails or in 7 interstate commerce, by any means or instruments of 8 transportation, any such security for the purpose of sale or for 9 delivery after sale, or; 10 (c) making use of any means or instruments of transportation or 11 communication in interstate commerce or of the mails to offer 12 to sell or offer to buy through the use or medium of any 13 prospectus or otherwise any security, unless a registration 14 statement has been filed with the Commission as to such 15 security, or while the registration statement is the subject of a 16 refusal order or stop order or (prior to the effective date of the 17 registration statement) any public proceeding or examination 18 under 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) the officers, agents, servants, employees, and attorneys of 23 either Defendant; and (b) other persons in active concert or participation with 24 either Defendant or with anyone described in (a). 25 V. 26 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 27 Defendant is liable for disgorgement of $115,000.00, representing profits gained 28 4 1 as a result of the conduct alleged in the Complaint, together with prejudgment 2 interest thereon in the amount of $13,392.99 and a civil penalty in the amount of 3 $50,000.00 pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and 4 Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant shall 5 satisfy this obligation by paying the amounts set forth above to the Securities and 6 Exchange Commission within 30 days after entry of this Final Judgment. 7 Defendant may transmit payment electronically to the Commission, which 8 will provide detailed ACH transfer/Fedwire instructions upon request. Payment 9 may also be made directly from a bank account via Pay.gov through the SEC 10 website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by 11 certified check, bank cashier’s check, or United States postal money order payable 12 to the Securities and Exchange Commission, which shall be delivered or mailed to 13 14 15 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 16 and shall be accompanied by a letter identifying the case title, civil action number, 17 and name of this Court; Dale Scott Pearlman as a defendant in this action; and 18 specifying that payment is made pursuant to this Final Judgment. 19 Defendant shall simultaneously transmit photocopies of evidence of 20 payment and case identifying information to the Commission’s counsel in this 21 action. By making this payment, Defendant relinquishes all legal and equitable 22 right, title, and interest in such funds and no part of the funds shall be returned to 23 Defendant. The Commission shall send the funds paid pursuant to this Final 24 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 30 days following entry of this 28 5 1 Final Judgment. Defendant shall pay post judgment interest on any delinquent 2 amounts pursuant to 28 U.S.C. § 1961. 3 4 VI. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely 5 for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy 6 Code [11 U.S.C. §523], the allegations in the complaint are true and admitted by 7 Defendant, and further, any debt for disgorgement, prejudgment interest, civil 8 penalty or other amounts due by Defendant under this Final Judgment or any other 9 judgment, order, consent order, decree or settlement agreement entered in 10 connection with this proceeding, is a debt for the violation by Defendant of the 11 federal securities laws or any regulation or order issued under such laws, as set 12 forth in Section 523(a)(19) of the Bankruptcy Code [11 U.S.C. §523(a)(19)]. 13 VII. 14 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this 15 Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 16 of this Final Judgment. 17 18 19 20 2019 November 7 Dated: ______________________, _____ 21 22 23 24 ____________________________________ DAVID O. CARTER UNITED STATES DISTRICT JUDGE 25 26 27 28 6
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