Securities & Exchange Commission v. Texas Securities Partners, LLC et al, No. 4:2009cv00467 - Document 7 (E.D. Tex. 2009)
Court Description: FINAL JUDGMENT AS TO DEFENDANTS TONY E. MORRISON AND TEXAS SECURITIES PARTNERS LLC. Signed by Judge Michael H. Schneider on 9/17/2009. (baf, )
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Securities & Exchange Commission v. Texas Securities Partners, LLC et al Doc. 7 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS PLANO DIVISION SECURITIES AND EXCHANGE COMMISSION, Plaintiff, vs. TEXAS SECURITIES PARTNERS, LLC and TONY E. MORRISON Defendants. § § § § § § § § § § § § Civil Action No.: 4:09cv467 FINAL JUDGMENT AS TO DEFENDANTS TONY E. MORRISON AND TEXAS SECURITIES PARTNERS LLC The Securities and Exchange Commission having filed a Complaint and Defendants Tony E. Morrison and Texas Securities Partners LLC having entered general appearances; consented to the Court’s jurisdiction over them and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment: I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants and Defendants’ agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are 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 Dockets.Justia.com 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. II. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants and Defendants’ agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are 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: (1) to employ any device, scheme, or artifice to defraud; (2) 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 (3) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. SEC v. Texas Securities Partners, LLC, and Tony E. Morrison Final Judgment As to Defendants Tony E. Morrison and Texas Securities Partners, LLC Page 1 III. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants and Defendants’ agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are 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 under Section 8 of the Securities Act [15 U.S.C. § 77h]. SEC v. Texas Securities Partners, LLC, and Tony E. Morrison Final Judgment As to Defendants Tony E. Morrison and Texas Securities Partners, LLC Page 2 IV. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants are liable, jointly and severally, for disgorgement of $1,200,000, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $52,802.44, for a total of $1,252,802.44. Based on Defendants’ sworn representations in their Statements of Financial Condition dated June 30, 2009, and other documents and information submitted to the Commission, however, the Court is not ordering Defendants to pay civil penalties, and payment of the disgorgement and pre-judgment interest thereon is waived. The determination not to impose civil penalties and to waive payment of all of the disgorgement and pre-judgment interest is contingent upon the accuracy and completeness of Defendants’ Statements of Financial Condition. If at any time following the entry of this Final Judgment the Commission obtains information indicating that Defendants’ representations to the Commission concerning their assets, income, liabilities, or net worth were fraudulent, misleading, inaccurate, or incomplete in any material respect as of the time such representations were made, the Commission may, at its sole discretion and without prior notice to Defendants, petition the Court for an order requiring Defendants to pay the unpaid portion of the disgorgement, pre-judgment and post-judgment interest thereon, and the maximum civil penalties allowable under the law. In connection with any such petition, the only issue shall be whether the financial information provided by Defendants was fraudulent, misleading, inaccurate, or incomplete in any material respect as of the time such representations were made. In its petition, the Commission may move this Court to consider all available remedies, including, but not limited to, ordering Defendants to pay funds or assets, directing the forfeiture of any assets, or sanctions for contempt of this Final Judgment. The Commission may also SEC v. Texas Securities Partners, LLC, and Tony E. Morrison Final Judgment As to Defendants Tony E. Morrison and Texas Securities Partners, LLC Page 3 request additional discovery. Defendants may not, by way of defense to such petition: (i) challenge the validity of the Consent or this Final Judgment; (ii) contest the allegations in the Complaint filed by the Commission; (iii) assert that payment of disgorgement, pre-judgment and post-judgment interest or civil penalties should not be ordered; (iv) contest the amount of disgorgement and pre-judgment and post-judgment interest; (v) contest the imposition of the maximum civil penalties allowable under the law; or (vi) assert any defense to liability or remedy, including, but not limited to, any statute of limitations defense. V. 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 Defendants shall comply with all of the undertakings and agreements set forth therein. . VI. 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. VII. There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. SIGNED this 17th day of September, 2009. ____________________________________ MICHAEL H. SCHNEIDER UNITED STATES DISTRICT JUDGE SEC v. Texas Securities Partners, LLC, and Tony E. Morrison Final Judgment As to Defendants Tony E. Morrison and Texas Securities Partners, LLC Page 4
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