United States Securities and Exchange Commission, et al. v. Treasure Enterprise LLC, et al., No. 4:2017cv10963 - Document 306 (E.D. Mich. 2024)

Court Description: FINAL JUDGMENT as to Defendant Patricia Enright Gray. Signed by District Judge Matthew F. Leitman. (HRya)

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United States Securities and Exchange Commission, et al. v. Treasure Enterprise LLC, et al. Doc. 306 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN UNITED STATES SECURITIES AND EXCHANGE COMMISSION, Plaintiff, Case No. 17-cv-10963 Hon. Matthew F. Leitman v. TREASURE ENTERPRISE LLC, PATRICIA ENRIGHT GRAY and LARRY ALLEN HOLLEY, Defendants, And KINGDOM ASSET MANAGEMENT LLC and CARLEEN RENEE HOLLY, Relief Defendants __________________________________________________________________/ FINAL JUDGMENT AS TO DEFENDANT PATRICIA ENRIGHT GRAY The Securities and Exchange Commission having filed a Complaint and Defendant Patricia Enright Gray (“Defendant”) having entered a general appearance; consented to the Court’s jurisdiction over Defendant and the subject matter of this action; consented to the injunctive relief set forth in Sections I through III hereto; waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment: 1 Dockets.Justia.com I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [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: (a) to employ any device, scheme, or artifice to defraud; (b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a). 2 II. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly: (a) to employ any device, scheme, or artifice to defraud; (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 light of the circumstances under which they were made, not misleading; or (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a). 3 III. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 5 of the Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable exemption: (a) Unless a registration statement is in effect as to a security, making use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell such security through the use or medium of any prospectus or otherwise; (b) Unless a registration statement is in effect as to a security, carrying or causing to be carried through the mails or in interstate commerce, by any means or instruments of transportation, any such security for the purpose of sale or for delivery after sale; or (c) Making use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed with the Commission as to such security, or while the registration statement is the subject of a refusal order or stop order or (prior to the effective date of the registration statement) any public proceeding or examination 4 under Section 8 of the Securities Act [15 U.S.C. § 77h]. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a). IV. It is hereby further ordered, adjudged, and decreed that Defendant is liable for disgorgement of $100,162 and prejudgment interest of $16,899, representing illgotten gains resulting from the conduct alleged in the amended complaint, which shall be deemed satisfied by the restitution ordered against Gray in the criminal case, United States v. Patricia E. Gray, No. 18-cr-20224(2) (E.D. Mich.). V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that civil penalties are not being imposed against Defendant in light of Defendant’s conviction and imprisonment in United States v. Patricia E. Gray, No. 18-cr-20224(2) (E.D. Mich.). 5 VI. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. §523, the allegations in the Complaint are true and admitted by Defendant, and further, any debt for disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this Final Judgment or any other judgment, order, consent order, decree or settlement agreement entered in connection with this proceeding, is a debt for the violation by Defendant of the federal securities laws or any regulation or order issued under such laws, as set forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19). VII. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated herein with the same force and effect as if fully set forth herein, and that Defendant shall comply with all of the undertakings and agreements set forth herein. 6 VIII. 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. KINIKIA ESSIX CLERK OF COURT By: Approved: s/Matthew F. Leitman MATTHEW F. LEITMAN United States District Judge Dated: February 5, 2024 Detroit, Michigan 7 s/Holly A. Ryan Deputy Clerk

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