Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_14-cv-02743/USCOURTS-cand-4_14-cv-02743-19/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

---

FINAL JUDGMENT AS TO DEFENDANT SALEEM KHAN CASE NO. 3:14-CV-02743-HSG

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

JINA L. CHOI (N.Y. Bar No. 2699718)

SUSAN F. LaMARCA (Cal. Bar No. 215231)

 lamarcas@sec.gov

E. BARRETT ATWOOD (Cal. Bar No. 291181)

 atwoode@sec.gov

WADE RHYNE (Cal. Bar No. 216799) rhynew@sec.gov 

VICTOR HONG (Cal. Bar No. 165938) hongv@sec.gov

Attorneys for Plaintiff

SECURITIES AND EXCHANGE COMMISSION

44 Montgomery Street, Suite 2800

San Francisco, California 94104

Telephone: (415) 705-2500

Facsimile: (415) 705-2501

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,

vs.

SALEEM KHAN, et al.,

Defendants.

Case No. 3:14-CV-02743-HSG (DMR)

FINAL JUDGMENT AS TO 

DEFENDANT SALEEM KHAN

Case 4:14-cv-02743-HSG Document 138 Filed 09/21/16 Page 1 of 4
FINAL JUDGMENT AS TO DEFENDANT SALEEM KHAN -2- CASE NO. 3:14-CV-02743-HSG

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

The Securities and Exchange Commission having filed a Complaint and Defendant Saleem 

Khan (“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 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 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).

II.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is 

liable for disgorgement of $7,493,000, representing profits gained as a result of the conduct alleged in 

the Complaint, together with prejudgment interest thereon in the amount of $846,147, and a civil 

penalty in the amount of $7,493,000 pursuant to Section 21A of the Exchange Act [15 U.S.C. § 78uCase 4:14-cv-02743-HSG Document 138 Filed 09/21/16 Page 2 of 4
FINAL JUDGMENT AS TO DEFENDANT SALEEM KHAN -3- CASE NO. 3:14-CV-02743-HSG

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1]. Defendant shall satisfy this obligation by paying $15,832,147 to the Securities and Exchange 

Commission within 14 days after entry of this Final Judgment.

Defendant may transmit payment electronically to the Commission, which will provide 

detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a 

bank account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm. 

Defendant may also pay by certified check, bank cashier’s check, or United States postal money 

order payable to the Securities and Exchange Commission, which shall be delivered or mailed to 

Enterprise Services Center

Accounts Receivable Branch

6500 South MacArthur Boulevard

Oklahoma City, OK 73169

and shall be accompanied by a letter identifying the case title, civil action number, and name of this 

Court; Saleem Khan 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 

identifying information 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 Commission shall send the funds paid pursuant to this 

Final Judgment to the United States Treasury. 

The Commission may enforce the Court’s judgment for disgorgement and prejudgment 

interest by moving for civil contempt (and/or through other collection procedures authorized by law) 

at any time after 14 days following entry of this Final Judgment. Defendant shall pay post judgment 

interest on any delinquent amounts pursuant to 28 U.S.C. § 1961. 

III.

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, 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 

Case 4:14-cv-02743-HSG Document 138 Filed 09/21/16 Page 3 of 4
FINAL JUDGMENT AS TO DEFENDANT SALEEM KHAN -4- CASE NO. 3:14-CV-02743-HSG

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

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). Nothing in this Final Judgment, including this paragraph, 

affects Defendant’s rights under the Fifth Amendment in any proceeding, regardless whether the 

Commission is a party. 

IV.

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.

V.

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.

Dated: September 21, 2016

____________________________________

Hon. Haywood S. Gilliam, Jr. 

UNITED STATES DISTRICT JUDGE

Case 4:14-cv-02743-HSG Document 138 Filed 09/21/16 Page 4 of 4