Securities and Exchange Commission v. GexCrypto et al, No. 2:2023cv00191 - Document 4 (D. Nev. 2023)
Court Description: ORDER Granting 3 Stipulated/Consent Judgment. Signed by Judge Jennifer A. Dorsey on 3/1/2023. (Copies have been distributed pursuant to the NEF - JQC)
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• Securities and Exchange Commission v. GexCrypto et al Doc. 4 Case 2:23-cv-00191-JAD-BNW Document 4 Filed 03/01/23 Page 1 of 8 UNITED STATES DISTRICT COURT DISTRICT OF NEVADA 2 3 4 SECURITIES AND EXCHANGE COMMISSION, 5 6 7 8 9 10 11 12 13 14 15 16 17 Plaintiff, Case No. 2:23-cv-00191-JAD-BNW V. GEXCRYPTO CORP. (a/k/a GexCrypto Global Trading Corp.) and EMILIANO S. RYN, ECF No. 3 Defendant. ORDER GRANTING MOTION TO APPROVE STIPULATED CONSENT JUDGMENT AS TO DEFENDANT EMILIANO S. RYN The Securities and Exchange Commission having filed a Complaint and Defendant Emiliano S. Ryn ("Defendant") having entered a general appearance; consented to the Court's jurisdiction over Defendant and the subject matter of this action; consented to entry of this l inal Judgment without admitting or denying the allegations of the Complaint (except as to 18 jurisdiction and except as otherwise provided herein in paragraph VII); waived findings of fact 19 and conclusions of law; and waived any right to appeal from this Final Judgment: 20 21 22 I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section l0(b) of the 24 Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule !0b-5 25 promulgated thereunder [ 17 C.F.R. § 240.10b-5], by using any means or instrumentality of 26 27 28 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: Dockets.Justia.com Case 2:23-cv-00191-JAD-BNW Document 4 Filed 03/01/23 Page 2 of 8 2 (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 3 necessary in order to make the statements made, in the I ight of the circumstances 4 under which they were made, not misleading; or 5 6 (c) operate as a fraud or deceit upon any person. 7 8 9 10 II to engage in any act, practice, or course of business which operates or would 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) Defendanf s 12 officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or 13 participation with Defendant or with anyone described in (a). 14 15 16 17 I I. 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 18 (the "Securities Act") [ 15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any 19 means or instruments of transportation or communication in interstate commerce or by use of the 20 mails, directly or indirectly: 21 22 23 (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 24 or any omission of a material fact necessary in order to make the statements 25 made, in light of the circumstances under which they were made, not misleading; 26 or 27 28 (c) to engage in any transaction, practice, or course of business which operates or 2 Case 2:23-cv-00191-JAD-BNW Document 4 Filed 03/01/23 Page 3 of 8 would operate as a fraud or deceit upon the purchaser. 2 3 4 5 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 6 officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or 7 participation with Defendant or with anyone described in (a). 8 9 10 11 12 13 11 I. 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) 14 means or instruments of transportation or communication in interstate commerce 15 or of the mails to sell such security through the use or medium of any prospectus 16 or otherwise; 17 18 Unless a registration statement is in effect as to a security, making use of any (b) Unless a registration statement is in effect as to a security, carrying or causing to 19 be carried through the mails or in interstate commerce, by any means or 20 instruments of transportation, any such security for the purpose of sale or for 21 delivery after sale; or 22 23 (c) Making use of any means or instruments of transpo11ation or communication in 24 interstate commerce or of the mails to offer to sell or offer to buy through the use 25 or medium of any prospectus or otherwise any security, unless a registration 26 statement has been filed with the Commission as to such security, or while the 27 28 registration statement is the subject of a refusal order or stop order or (prior to the 3 Case 2:23-cv-00191-JAD-BNW Document 4 Filed 03/01/23 Page 4 of 8 effective date of the registration statement) any public proceeding or examination 2 3 4 5 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 6 receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant's 7 officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or 8 participation with Defendant or with anyone described in (a). 9 IV. IO II IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to Section 12 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(5)], Defendant is permanently restrained and 13 enjoined from directly or indirectly, including, but not limited to, through any entity owned or 14 15 16 17 18 19 20 21 22 23 controlled by him, participating in the issuance, purchase, offer, or sale of any security, provided however, that such injunction shall not prevent him from purchasing or selling securities for his own personal account. 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 conce11 or participation with Defendant or with anyone described in (a). 24 25 26 27 28 V. IT IS FURTHER ORDERED, AD.JUDGED, AND DECREED that, pursuant to Section 21(d)(2) of the Exchange Act [ 15 U .S.C. § 78u(d)(2)] and/or Section 20(e) of the Securities Act Case 2:23-cv-00191-JAD-BNW Document 4 Filed 03/01/23 Page 5 of 8 Case 2:23-cv-00191-JAD-BNW Document 4 Filed 03/01/23 Page 6 of 8 and shall be accompanied by a letter identifying the case title, civil action number, and name of 2 3 4 5 this Cou11; Emiliano S. Ryn as a defendant in this action; and specifying that payment is made pursuant to this Final Judgment. Defendant shall simultaneously transmit photocopies of evidence of payment and case 6 identifying information to the Commission·s counsel in this action. By making this payment, 7 Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part 8 of the funds shall be returned to Defendant. 9 10 II 12 13 14 15 16 17 The Commission may enforce the Court's judgment for disgorgement and prejudgment interest by using all collection procedures authorized by law, including, but not limited to, moving for civil contempt at any time after 30 days following entry of this Final Judgment. The Commission may enforce the Court" s judgment for penalties by the use of all collection procedures authorized by law, including the Federal Debt Collection Procedures Act, 28 U.S.C. § 300 I et seq., and moving for civil contempt for the violation of any Court orders issued in this action. Defendant shall pay post judgment interest on any amounts due after 30 18 days of the entry of this Final Judgment pursuant to 28 U .S.C. § 1961. The Commission shall 19 hold the funds, together with any interest and income earned thereon (collectively, the "Fund"), 20 pending further order of the Court. 21 22 23 The Commission may propose a plan to distribute the Fund subject to the Court's approval. Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund 24 provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. The Court shall retain 25 jurisdiction over the administration of any distribution of the Fund and the Fund may only be 26 27 28 disbursed pursuant to an Order of the Court. Regardless of whether any such Fair Fund distribution is made, amounts ordered to be 6 Case 2:23-cv-00191-JAD-BNW Document 4 Filed 03/01/23 Page 7 of 8 paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the 2 3 4 5 government for all purposes, including all tax purposes. To preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or reduction of any award of compensatory damages in any Related Investor Action based on Defendant's payment of disgorgement in this 6 action, argue that he is entitled to, nor shall he further benefit by, offset or reduction of such 7 compensatory damages award by the amount of any part of Defendant's payment of a civil 8 penalty in this action ("Penalty Offset"). If the court in any Related Investor Action grants such 9 10 11 a Penalty Offset, Defendant shall, within 30 days after entry of a final order granting the Penalty Offset, notify the Commission's counsel in this action and pay the amount of the Penalty Offset 12 to the United States Treasury or to a Fair Fund, as the Commission directs. Such a payment shall 13 not be deemed an additional civil penalty and shall not be deemed to change the amount of the 14 civil penalty imposed in this Judgment. For purposes of this paragraph, a '·Related Investor 15 16 17 Action" means a private damages action brought against Defendant by or on behalf of one or more investors based on substantially the same facts as alleged in the Complaint in this action. 18 VII. 19 BANKRUPTCY NONDISCHARGEABILITY 20 21 22 23 IT IS FURTHER ORDERED, AD.JUDGED, AND DECREED that, solely for purposes o 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 24 disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this 25 Final Judgment or any other judgment, order. consent order, decree or settlement agreement 26 entered in connection with this proceeding, is a debt for the violation by Defendant of the federal 27 28 7 Case 2:23-cv-00191-JAD-BNW Document 4 Filed 03/01/23 Page 8 of 8
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