Securities and Exchange Commission v. Kaplan, Esq. et al, No. 3:2016cv00270 - Document 99 (D. Nev. 2018)

Court Description: ORDER granting ECF No. 96 Stipulation for Entry of Final Judgment Against Relief Defendant Lisa M. Kaplan. Signed by Judge Miranda M. Du on 1/8/2018. (Lisa M. Kaplan (Relief Defendant) terminated.) (Copies have been distributed pursuant to the NEF - DRM)
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Securities and Exchange Commission v. Kaplan, Esq. et al 1 2 3 Doc. 99 Alyssa A. Qualls (IL Bar No. 6292124) Email: quallsa@sec.gov Amy S. Cotter (IL Bar No. 6238157) Email: cottera@sec.gov Raven A. Winters (IL Bar No. 6291077) Email: wintersr@sec.gov 4 5 6 7 8 Attorneys for Plaintiff Robert J. Burson, Associate Regional Director Amy S. Cotter, Assistant Regional Director Alyssa A. Qualls, Regional Trial Counsel Securities and Exchange Commission 175 West Jackson Blvd., Suite 900 Chicago, Illinois 60604 Telephone: (312) 353-7390 Facsimile: (312) 353-7398 9 UNITED STATES DISTRICT COURT 10 DISTRICT OF NEVADA 11 Northern Division 12 13 SECURITIES AND EXCHANGE COMMISSION, 14 Case No. 3:16-cv-00270-MMD-VPC Honorable Miranda Du Plaintiff, 15 vs. 16 17 18 19 DAVID B. KAPLAN, ESQ., SYNCHRONIZED ORGANIZATIONAL SOLUTIONS, LLC, SYNCHRONIZED ORGANIZATIONAL SOLUTIONS INTERNATIONAL, LTD., and MANNA INTERNATIONAL ENTERPRISES, INC., STIPULATION FOR ENTRY OF FINAL JUDGMENT AGAINST RELIEF DEFENDANT LISA M. KAPLAN 20 Defendants, 21 and 22 24 LISA M. KAPLAN, THE WATER-WALKING FOUNDATION, INC., and MANNA INVESTMENTS, LLC, 25 Relief Defendants. 23 26 27 28 IT IS HEREBY STIPULATED AND AGREED, by and between the undersigned parties, as follows: Dockets.Justia.com 1 1. The United States Securities and Exchange Commission (the “Commission”) and 2 Relief Defendant Lisa M. Kaplan (“Relief Defendant,” and together with the Commission, the 3 “Parties”) jointly move this Court to enter final judgment against Relief Defendant. The Parties 4 have reached a settlement, and jointly move this Court to enter the proposed final judgment and 5 resolve this matter. 6 7 8 9 10 11 2. The Parties have reached a settlement to resolve all claims against Relief Defendant. The settlement includes: (1) disgorgement; and (2) prejudgment interest. 3. A proposed final judgment as to Relief Defendant is attached as Exhibit A. Among other things, the proposed final judgment orders Relief Defendant to pay disgorgement in the amount of $340,764.75, plus prejudgment interest thereon in the amount of $26,762.65. 4. Relief Defendant shall partially satisfy this obligation through the transfer of 12 balances held in the frozen accounts after entry of this Final Judgment, as set forth in sections II to 13 V of Exhibit A. 14 5. Without either admitting or denying the allegations of the complaint in this action, 15 Relief Defendant has consented to the entry of the proposed final judgment, as reflected in the 16 Consent attached as Exhibit B. 17 18 19 6. The settlement brings the litigation to a close, without the need for a trial, and thus conserves the resources of the Court and the Parties. 7. The Parties agree that entry of the proposed final judgment is in the public interest, 20 and is a fair and reasonable resolution of this matter. See SEC v. Citigroup Global Markets, Inc., 21 752 F.3d 285 (2d Cir. 2014). 22 23 8. The Parties respectfully request the entry of final judgment at the Court’s earliest convenience. 24 25 26 27 28 2 Case No. 3:16-CV-00270-MMD-VPC 1 WHEREFORE, for the foregoing reasons, the parties jointly move this Court for entry of 2 final judgment against Relief Defendant. 3 Date: January 8, 2018 4 5 6 7 8 /s/ Lisa M. Kaplan Lisa M. Kaplan 1314-B Cave Rock Drive Glenbrook, NV 89413 Telephone: (509) 263-4625 /s/ Alyssa A. Qualls___ Alyssa A. Qualls (IL Bar No. 6292124) 175 West Jackson Blvd., Suite 1450 Chicago, Illinois 60604 Telephone: (312) 353-7390 Facsimile: (312) 353-7398 Email: quallsa@sec.gov 9 10 Counsel for Plaintiff United States Securities and Exchange Commission 11 12 IT IS SO ORDERED: 13 ________________________________ The Honorable Miranda Du United States District Judge 14 January 8, 2018 Dated: _______________________ 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 Case No. 3:16-CV-00270-MMD-VPC Case 3:16-cv-00270-MMD-VPC Document 96-1 Filed 01/08/18 Page 1 of 7 EXHIBIT A Case 3:16-cv-00270-MMD-VPC Document 96-1 Filed 01/08/18 Page 2 of 7 1 2 3 Alyssa A. Qualls (IL Bar No. 6292124) Email: quallsa@sec.gov Amy S. Cotter (IL Bar No. 6238157) Email: cottera@sec.gov Raven A. Winters (IL Bar No. 6291077) Email: wintersr@sec.gov 4 5 6 7 8 Attorneys for Plaintiff Securities and Exchange Commission Robert J. Burson, Associate Regional Director Amy S. Cotter, Assistant Regional Director Alyssa A. Qualls, Regional Trial Counsel 175 West Jackson Blvd., Suite 900 Chicago, Illinois 60604 Telephone: (312) 353-7390 Facsimile: (312) 353-7398 9 10 UNITED STATES DISTRICT COURT 11 DISTRICT OF NEVADA 12 Northern Division 13 14 SECURITIES AND EXCHANGE COMMISSION, Honorable Miranda Du Plaintiff, 15 16 Case No. 3:13-cv-00270-MMD-VPC FINAL JUDGMENT AS TO RELIEF DEFENDANT LISA M. KAPLAN vs. 20 DAVID B. KAPLAN, ESQ., SYNCHRONIZED ORGANIZATIONAL SOLUTIONS, LLC, SYNCHRONIZED ORGANIZATIONAL SOLUTIONS INTERNATIONAL, LTD., and MANNA INTERNATIONAL ENTERPRISES, INC., 21 Defendants, 17 18 19 22 and 24 LISA M. KAPLAN, THE WATER-WALKING FOUNDATION, INC., and MANNA INVESTMENTS, LLC, 25 Relief Defendants. 23 26 27 28 Case No. 3:16-cv-00270-MMD-VPC Case 3:16-cv-00270-MMD-VPC Document 96-1 Filed 01/08/18 Page 3 of 7 1 The Securities and Exchange Commission having filed a Complaint, Relief Defendant Lisa M. 2 Kaplan (“Relief Defendant”) having entered a general appearance; consented to the Court’s jurisdiction 3 over Relief Defendant and the subject matter of this action; consented to entry of this Final Judgment 4 without admitting or denying the allegations of the Complaint (except as to jurisdiction and except as 5 otherwise provided herein in paragraph VI); waived findings of fact and conclusions of law; and waived 6 any right to appeal from this Final Judgment: 7 I. 8 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Relief Defendant 9 is liable for disgorgement of $340,764.75, representing funds received as a result of the conduct alleged 10 in the Complaint, together with prejudgment interest thereon in the amount of $26,762.65. Relief 11 Defendant shall partially satisfy this obligation through the transfer of balances held in the frozen 12 accounts after entry of this Final Judgment, as set forth in paragraphs II to V below. Any amounts paid 13 toward disgorgement by Relief Defendant shall be credited against the amount Defendants have been 14 ordered to disgorge. 15 The Commission may enforce the Court’s judgment for disgorgement and prejudgment interest 16 by moving for civil contempt (and/or through other collection procedures authorized by law) at any time 17 after 14 days following entry of this Final Judgment. Relief Defendant shall pay post judgment interest 18 on any delinquent amounts pursuant to 28 U.S.C. § 1961. The Commission shall hold the funds, 19 together with any interest and income earned thereon (collectively, the “Fund”), pending further order of 20 the Court. 21 The Commission may propose a plan to distribute the Fund subject to the Court’s approval. 22 Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund provisions of 23 Section 308(a) of the Sarbanes-Oxley Act of 2002. The Court shall retain jurisdiction over the 24 administration of any distribution of the Fund. If the Commission staff determines that the Fund will not 25 be distributed, the Commission shall send the funds paid pursuant to this Final Judgment to the United 26 States Treasury. 27 28 II. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that within 3 days after being 2 Case No. 3:16-cv-00270-MMD-VPC Case 3:16-cv-00270-MMD-VPC Document 96-1 Filed 01/08/18 Page 4 of 7 1 served with a copy of this Final Judgment, TD Ameritrade (“TD Ameritrade”) shall transfer the entire 2 balance of the following TD Ameritrade account which was frozen pursuant to an Order of this Court to 3 the Commission: 4 Account Owner Kaplan, Lisa M. 5 6 Acct. Ending in: #XXX-2764 TD Ameritrade may transmit payment electronically to the Commission, which will provide 7 detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a 8 bank account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm. TD 9 Ameritrade also may transfer these funds by certified check, bank cashier’s check, or United States 10 postal money order payable to the Securities and Exchange Commission, which shall be delivered or 11 mailed to 12 13 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 14 15 and shall be accompanied by a letter identifying the case title, civil action number, and name of this 16 Court; and specifying that payment is made pursuant to this Final Judgment. 17 18 III. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that within 3 days after being 19 served with a copy of this Final Judgment, Wells Fargo Bank, N.A. (“Wells Fargo”) shall transfer the 20 entire balance of the following Wells Fargo accounts which were frozen pursuant to an Order of this 21 Court to the Commission: 22 23 Account Owner Kaplan, Lisa & David B. Kaplan, Lisa & David B. Acct. Ending in: #XXX-2016 #XXX-9299 24 25 Wells Fargo may transmit payment electronically to the Commission, which will provide 26 detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a 27 bank account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm. Wells 28 3 Case No. 3:16-cv-00270-MMD-VPC Case 3:16-cv-00270-MMD-VPC Document 96-1 Filed 01/08/18 Page 5 of 7 1 Fargo also may transfer these funds by certified check, bank cashier’s check, or United States postal 2 money order payable to the Securities and Exchange Commission, which shall be delivered or mailed to 3 4 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 5 6 and shall be accompanied by a letter identifying the case title, civil action number, and name of this 7 Court; and specifying that payment is made pursuant to this Final Judgment. 8 9 IV. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that within 3 days after being 10 served with a copy of this Final Judgment, Spokane Teachers Credit Union (“STCU”) shall transfer the 11 entire balance of the following STCU account which was frozen pursuant to an Order of this Court to 12 the Commission: 13 14 15 16 Account Owner Kaplan, David B. and Lisa M. Cassie Kaplan House Savings Kaplan, David B. and Lisa M. Acct. Ending in: #XXX-4124 #XXX-2526 STCU may transmit payment electronically to the Commission, which will provide detailed 17 ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a bank 18 account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm. STCU also 19 may transfer these funds by certified check, bank cashier’s check, or United States postal money order 20 payable to the Securities and Exchange Commission, which shall be delivered or mailed to 21 22 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 23 24 and shall be accompanied by a letter identifying the case title, civil action number, and name of this 25 Court; and specifying that payment is made pursuant to this Final Judgment. 26 27 28 V. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that within 3 days after being served with a copy of this Final Judgment, JPMorgan Chase Bank, N.A. (“JPMC”) shall transfer the 4 Case No. 3:16-cv-00270-MMD-VPC Case 3:16-cv-00270-MMD-VPC Document 96-1 Filed 01/08/18 Page 6 of 7 1 entire balance of the following JPMC account which was frozen pursuant to an Order of this Court to the 2 Commission: 3 4 5 Account Owner Kaplan, Lisa M. Acct. Ending in: #XXX-1795 JPMC may transmit payment electronically to the Commission, which will provide detailed 6 ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a bank 7 account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm. JPMC also 8 may transfer these funds by certified check, bank cashier’s check, or United States postal money order 9 payable to the Securities and Exchange Commission, which shall be delivered or mailed to 10 11 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 12 13 and shall be accompanied by a letter identifying the case title, civil action number, and name of this 14 Court; and specifying that payment is made pursuant to this Final Judgment. VI. 15 16 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated 17 herein with the same force and effect as if fully set forth herein, and that Relief Defendant shall comply with 18 all of the undertakings and agreements set forth therein. 19 VII. 20 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of 21 exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, the 22 allegations in the complaint are true and admitted by Relief Defendant, and further, any debt for 23 disgorgement, prejudgment interest, or other amounts due by Relief Defendant under this Final 24 Judgment or any other judgment, order, consent order, decree or settlement agreement entered in 25 connection with this proceeding, is a debt for the violation of the federal securities laws or any 26 regulation or order issued under such laws, as set forth in Section 523(a)(19) of the Bankruptcy Code, 11 27 U.S.C. § 523(a)(19). 28 5 Case No. 3:16-cv-00270-MMD-VPC Case 3:16-cv-00270-MMD-VPC Document 96-1 Filed 01/08/18 Page 7 of 7 1 VIII. 2 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain 3 jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. 4 5 6 7 Dated: ______________, 2017 ____________________________________ The Honorable Miranda Du United States District Judge 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 Case No. 3:16-cv-00270-MMD-VPC Case 3:16-cv-00270-MMD-VPC Document 96-2 Filed 01/08/18 Page 1 of 8 EXHIBIT B Case 3:16-cv-00270-MMD-VPC Document 96-2 Filed 01/08/18 Page 2 of 8 Case 3:16-cv-00270-MMD-VPC Document 96-2 Filed 01/08/18 Page 3 of 8 Case 3:16-cv-00270-MMD-VPC Document 96-2 Filed 01/08/18 Page 4 of 8 Case 3:16-cv-00270-MMD-VPC Document 96-2 Filed 01/08/18 Page 5 of 8 Case 3:16-cv-00270-MMD-VPC Document 96-2 Filed 01/08/18 Page 6 of 8 Case 3:16-cv-00270-MMD-VPC Document 96-2 Filed 01/08/18 Page 7 of 8 Case 3:16-cv-00270-MMD-VPC Document 96-2 Filed 01/08/18 Page 8 of 8