Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_16-cv-00344/USCOURTS-caed-1_16-cv-00344-16/pdf.json

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

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

SECURITIES AND EXCHANGE

COMMISSION,

Plaintiff,

vs.

BIC REAL ESTATE DEVELOPMENT 

CORPORATION and DANIEL R. 

NASE, individually and d/b/a 

BAKERSFIELD INVESTMENT 

CLUB,

Defendants,

BIC SOLO 401K TRUST and 

MARGARITA NASE,

Relief Defendants.

Case No. 1:16-cv-00344-LJO-JLT

JUDGMENT AS TO DEFENDANT 

DANIEL R. NASE

The Securities and Exchange Commission (“SEC”) having filed a Complaint 

and Defendant Daniel R. Nase 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 Judgment without admitting or denying the allegations of the Complaint 

(except as to jurisdiction and except as otherwise provided herein in paragraph VI); 

waived findings of fact and conclusions of law; and waived any right to appeal from 

this 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 

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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 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 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:

(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 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

(c) to engage in any transaction, practice, or course of business which 

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operates or would operate as a fraud or deceit upon the purchaser.

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 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).

III.

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) 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 SEC

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].

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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 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).

IV.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendant shall pay disgorgement of ill-gotten gains, prejudgment interest thereon, 

and a civil penalty pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 

77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. The Court 

shall determine the amounts of the disgorgement and civil penalty upon motion of the 

SEC. Prejudgment interest shall be calculated from March 11, 2016, based on the 

rate of interest used by the Internal Revenue Service for the underpayment of federal 

income tax as set forth in 26 U.S.C. § 6621(a)(2). In connection with the SEC’s

motion for disgorgement and/or civil penalties, and at any hearing held on such a 

motion: (a) Defendant will be precluded from arguing that he did not violate the 

federal securities laws as alleged in the Complaint; (b) Defendant may not challenge 

the validity of the Consent or this Judgment; (c) solely for the purposes of such 

motion, the allegations of the Complaint shall be accepted as and deemed true by the 

Court; and (d) the Court may determine the issues raised in the motion on the basis of 

affidavits, declarations, excerpts of sworn deposition or investigative testimony, and 

documentary evidence, without regard to the standards for summary judgment 

contained in Rule 56(c) of the Federal Rules of Civil Procedure. In connection with 

the SEC’s motion for disgorgement and/or civil penalties, the parties may take 

discovery, including discovery from appropriate non-parties.

//

//

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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 Defendant shall comply with all of the undertakings and agreements 

set forth therein.

VI.

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, the allegations in the complaint are true and admitted by Defendant, 

and further, any debt for disgorgement, prejudgment interest, civil penalty or other 

amounts due by Defendant under this 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 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).

VII.

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 

Judgment.

IT IS SO ORDERED.

Dated: July 26, 2016 /s/ Lawrence J. O’Neill _____ 

UNITED STATES CHIEF DISTRICT JUDGE

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