Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_08-cv-01464/USCOURTS-azd-2_08-cv-01464-3/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:77 Securities Fraud

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Securities and Exchange Commission, 

Plaintiff, 

vs.

Alliance Transcription Services, Inc., et

al., 

Defendants. 

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No. CV 08-1464-PHX-NVW

FINAL JUDGMENT AS TO DEFENDANT

RICHARD DABNEY

Plaintiff’s Motion for Summary Judgment having been granted by separate order

(doc. #91),

I. 

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant

Richard Dabney and Defendant's 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 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;

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(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

Defendant and Defendant's 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].

III.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to

Section 21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)], Defendant is prohibited,

for five years following the date of entry of this Final Judgment, from acting as an officer

or director of any issuer that has a class of securities registered pursuant to Section 12 of

the Exchange Act [15 U.S.C. § 78l] or that is required to file reports pursuant to Section

15(d) of the Exchange Act [15 U.S.C. § 78o(d)].

IV.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

Defendant is barred, for five years following the date of entry of this Final Judgment,

from participating in an offering of penny stock, including engaging in activities with a

broker, dealer, or issuer for purposes of issuing, trading, or inducing or attempting to

induce the purchase or sale of any penny stock. A penny stock is any equity security that

has a price of less than five dollars, except as provided in Rule 3a51-1 under the

Exchange Act [17 C.F.R. 240.3a51-1].

V.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

Defendant is liable for disgorgement of $315,940.74, representing profits gained as a

result of the conduct alleged in the Complaint, together with prejudgment interest thereon

in the amount of $87,602.41 for a total of $403,543.15. Defendant shall satisfy this

obligation by paying $403,543.15 within ten business days to the Clerk of this Court,

together with a cover letter identifying Richard Dabney as a defendant in this action;

setting forth the title and civil action number of this action and the name of this Court;

and specifying that payment is made pursuant to this Final Judgment. Defendant shall

simultaneously transmit photocopies of such payment and letter to the Commission’s

counsel in this action. By making this payment, Defendant relinquishes all legal and

equitable right, title, and interest in such funds, and no part of the funds shall be returned

to Defendant. The Clerk shall deposit the funds into an interest bearing account with the

Court Registry Investment System ("CRIS") or any other type of interest bearing account 

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that is utilized by the Court. These funds, together with any interest and income earned

thereon (collectively, the “Fund”), shall be held in the interest bearing account until

further order of the Court in accordance with 28 U.S.C. § 1914 and the guidelines set by

the Director of the Administrative Office of the United States Courts, the Clerk is

directed, without further order of this Court, to deduct from the income earned on the

money in the Fund a fee equal to ten percent of the income earned on the Fund. Such fee

shall not exceed that authorized by the Judicial Conference of the United States. The

Commission may propose a plan to distribute the Fund subject to the Court’s approval. 

Defendant shall pay post-judgment interest on any delinquent amounts pursuant to 28

U.S.C . § 1961.

VI.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

shall pay a civil penalty in the amount of $130,000.00 pursuant to Section 21(d) of the

Exchange Act [5 U.S.C. § 78u(d)]. Defendant shall make this payment within ten (10)

business days after entry of this Final Judgment by certified check, bank cashier's check,

or United States postal money order payable to the Securities and Exchange Commission. 

The payment shall be delivered or mailed to the Office of Financial Management,

Securities and Exchange Commission, Operations Center, 6432 General Green Way, Mail

Stop 0-3, Alexandria, Virginia 22312, and shall be accompanied by a letter identifying

Richard Dabney as a defendant in this action; setting forth the title and civil action

number of this action and the name of this Court; and specifying that payment is made

pursuant to this Final Judgment. Defendant shall pay post-judgment interest on any

delinquent amounts pursuant to 28 U.S.C. § 1961. The Commission shall remit the funds

paid pursuant to this paragraph to the United States Treasury. 

DATED: this 8th day of February, 2010. 

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