Securities and Exchange Commission v. McKinley Mortgage Co. LLC et al, No. 2:2018cv00616 - Document 11 (E.D. Cal. 2018)

Court Description: FINAL JUDGMENT as to Laura A. Sanford signed by District Judge Morrison C. England, Jr on 3/26/2018. (Fabillaran, J)
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Securities and Exchange Commission v. McKinley Mortgage Co. LLC et al Doc. 11 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 SACRAMENTO DIVISION 11 12 SECURITIES AND EXCHANGE COMMISSION, 13 14 Case No. 2:18-cv-00616-MCE-CMK Plaintiff, vs. FINAL JUDGMENT AS TO LAURA A. SANFORD 15 MCKINLEY MORTGAGE CO. LLC, MCKINLEY MORTGAGE COMPANY, LLC, TOBIAS J. 16 PRESTON, CHARLES G. PRESTON, CALEB J. PRESTON, and LAURA A. SANFORD, 17 Defendants. 18 19 20 The Securities and Exchange Commission (“Commission”) having filed a Complaint and 21 Laura A. Sanford (“Defendant”) having entered a general appearance; consented to the Court’s 22 jurisdiction over her and the subject matter of this action; consented to entry of this Final 23 Judgment without admitting or denying the allegations of the Complaint (except as to 24 jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from 25 this Final Judgment: 26 27 28 SEC V. MCKINLEY MORTGAGE CO. LLC, ET AL. FINAL JUDGMENT Dockets.Justia.com I. 1 2 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 3 permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 4 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any 5 means or instruments of transportation or communication in interstate commerce or by use of the 6 mails, directly or indirectly: 7 (a) to employ any device, scheme, or artifice to defraud; 8 (b) to obtain money or property by means of any untrue statement of a material fact or any omission of a material fact necessary in order to make the statements made, in 9 light of the circumstances under which they were made, not misleading; or 10 11 (c) would operate as a fraud or deceit upon the purchaser. 12 13 to engage in any transaction, practice, or course of business which operates or IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in 14 Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 15 receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s 16 agents and attorneys; and (b) other persons in active concert or participation with Defendant or 17 with anyone described in (a). II. 18 19 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent 20 is incorporated herein with the same force and effect as if fully set forth herein, and that 21 Defendant shall comply with all of the undertakings and agreements set forth therein, including 22 but not limited to: 23 A. Defendant undertakes to cooperate with the Commission in any and all 24 investigations, litigation or other proceedings relating to or arising from the matters described in 25 this action, except to the extent such cooperation is inconsistent with the defense of any other case 26 or investigation in which the Commission is not a party. 27 28 B. Defendant undertakes to cooperate with the Independent Manager/Monitor, as reasonably requested in connection with the Independent Manager/Monitor’s engagement or SEC V. MCKINLEY MORTGAGE CO. LLC, ET AL. FINAL JUDGMENT -2- 1 employment, except to the extent such cooperation is inconsistent with the defense of any other 2 case or investigation in which the Commission is not a party. Defendant shall take no action, 3 directly or indirectly, to hinder, obstruct, or otherwise interfere with the Independent 4 Manager/Monitor or any persons engaged or employed by the Independent Manager/Monitor in 5 carrying out the Independent Manager/Monitor’s responsibilities. 6 C. Defendant agrees that the Independent Manager/Monitor shall have all of the 7 immunities afforded to a Court-appointed receiver in a federal action. The Independent 8 Manager/Monitor and persons engaged or employed by the Independent Manager/Monitor in 9 carrying out the responsibilities hereunder shall not be liable for any act or omission of the 10 Independent Manager/Monitor or such person, respectively, or any of their partners, employees, 11 agents or attorneys, unless it shall be proven that the Independent Manager/Monitor or such other 12 person acted recklessly or in bad faith. In particular, the Independent Manager/Monitor shall not, 13 under any circumstances, be liable for any losses in connection with Alaska Financial Company 14 III LLC (“AFC III”) or Alaska Financial Company2 LLC (“AFC2”), or the loss of Investor funds 15 arising out of or related to the Independent Manager/Monitor’s work hereunder, including, but not 16 limited to, losses from either the sale of securities or failure to sell securities or delays in the sale 17 of securities by AFC III or AFC2 during the course of the Independent Manager/Monitor’s 18 engagement or employment. No claim may be filed against the Independent Manager/Monitor 19 without first obtaining Court approval to file such an action. 20 D. Defendant shall certify, in writing, compliance with the Undertakings set forth 21 above. The certification shall identify the Undertakings, provide written evidence of compliance 22 in the form of a narrative, and be supported by exhibits sufficient to demonstrate compliance. 23 The certification and supporting material shall be submitted to Steven Buchholz, Assistant 24 Regional Director, U.S. Securities and Exchange Commission, 44 Montgomery Street, 28th 25 Floor, San Francisco, CA 94104, with a copy to the Office of Chief Counsel of the Enforcement 26 Division, 100 F Street NE, Washington, DC 20549, no later than two months after the date of the 27 completion of the Undertakings. 28 SEC V. MCKINLEY MORTGAGE CO. LLC, ET AL. FINAL JUDGMENT -3- III. 1 2 3 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. IV. 4 5 There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil 6 Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. 7 8 IT IS SO ORDERED. Dated: March 26, 2018 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SEC V. MCKINLEY MORTGAGE CO. LLC, ET AL. FINAL JUDGMENT -4-