Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-01724/USCOURTS-caed-2_07-cv-01724-18/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 12:22 Securities Fraud

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1 [PROPOSED] JUDGMENT AS TO SIS,

AFS, AND LYNDON GROUP

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MARC J. FAGEL (Cal. Bar No. 154425) 

JOHN S. YUN (Cal. Bar No. 112260) 

THOMAS J. EME (Admitted in Illinois) 

LLOYD A. FARNHAM (Cal. Bar No. 202231) 

Attorneys for Plaintiff 

SECURITIES AND EXCHANGE COMMISSION 

44 Montgomery Street, 26th Floor 

San Francisco, California 94104 

Telephone: (415) 705-2500 

Facsimile: (415) 705-2501 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

SACRAMENTO DIVISION 

 

SECURITIES AND EXCHANGE COMMISSION, 

 Plaintiff, 

v. 

SECURE INVESTMENT SERVICES, INC., 

AMERICAN FINANCIAL SERVICES, INC., 

LYNDON GROUP, INC., DONALD F. NEUHAUS, 

and KIMBERLY A. SNOWDEN, 

 Defendants. 

Case No. 2:07-CV-01724-LEW-CMK 

JUDGMENT OF PERMANENT 

INJUNCTIVE RELIEF AND 

SEVERING OTHER REMEDIES 

FOR LATER DETERMINATION AS 

TO SECURE INVESTMENT 

SERVICES, INC., AMERICAN 

FINANCIAL SERVICES, INC., AND 

LYNDON GROUP, INC. 

The Securities and Exchange Commission having filed a Complaint and Defendants 

Secure Investment Services, Inc., American Financial Services, Inc., and Lyndon Group, Inc. 

(“Defendants”) having entered a general appearance by and through their Court-appointed 

Receiver; consented to the Court’s jurisdiction over Defendants and the subject matter of this 

action; consented to entry of this Judgment of Permanent Injunctive Relief and Severing other 

Remedies for Later Determination as to Secure Investment Services, Inc., American Financial 

Services, Inc., and Lyndon Group, Inc. (“Judgment”) without admitting or denying the 

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Case 2:07-cv-01724-GEB-CMK Document 105 Filed 01/10/08 Page 1 of 4
2 [PROPOSED] JUDGMENT AS TO SIS,

AFS, AND LYNDON GROUP

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allegations of the Complaint (except as to jurisdiction); 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 Defendants and their 

respective officers, agents, servants, employees, attorneys, and those persons in active concert or 

participation with any of them, who receive actual notice of this Judgment, by personal service 

or otherwise, and each of them, are permanently restrained and enjoined from, directly or 

indirectly, through the use of the means or instruments of transportation or communication in 

interstate commerce or the mails, offering to sell or selling securities, or, directly or indirectly, 

carrying or causing securities to be carried through the mails or in interstate commerce, for the 

purpose of selling or delivery after selling, in violation of Sections 5(a) and 5(c) of the Securities 

Act of 1933 (“Securities Act”) [15 U.S.C. §§ 77(e)(a) and 77(e)(c)]. 

II. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendants and their respective officers, agents, servants, employees, attorneys, and those 

persons in active concert or participation with any of them, who receive actual notice of this 

Judgment, by personal service or otherwise, and each of them, are permanently restrained and 

enjoined from, directly or indirectly, in the offer or sale of any securities, by the use of any 

means or instruments of transportation or communication in interstate commerce or by the use of 

the mails: 

A. Employing any device, scheme or artifice to defraud; 

B. Obtaining money or property by means of any untrue statement of a material fact or 

any omission 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. Engaging in any transaction, practice, or course of business which operates or would 

operate as a fraud or deceit upon the purchaser; 

in violation of Section 17(a) of the Securities Act [15 U.S.C. § 77q(a)]. 

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3 [PROPOSED] JUDGMENT AS TO SIS,

AFS, AND LYNDON GROUP

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III. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendants and their respective officers, agents, servants, employees, attorneys, and those 

persons in active concert or participation with any of them, who receive actual notice of this 

Judgment, by personal service or otherwise, and each of them, are permanently restrained and 

enjoined from, directly or indirectly, in connection with the purchase or sale of any securities, by 

the use of any means or instrumentality of interstate commerce, or of the mails, or of any facility 

of any national securities exchange: 

A. Employing any device, scheme or artifice to defraud; 

B. Making any untrue statement of a material fact or omitting 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. Engaging in any act, practice, or course of business which operates or would operate 

as a fraud or deceit upon any person; 

in violation of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 

U.S.C. § 78j(b)] and Exchange Act Rule 10b-5 [17 C.F.R. § 240.10b-5]. 

IV. 

Upon motion of the Commission, the Court shall determine whether it is appropriate to 

order disgorgement of ill-gotten gains and prejudgment interest thereon, and/or 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)], and, if so, the amount(s) of the disgorgement and/or civil 

penalty. In connection with the Commission’s motion for disgorgement and/or civil penalties, 

and at any hearing held on such a motion: (a) Defendants will be precluded from arguing that 

they did not violate the federal securities laws as alleged in the Complaint; (b) Defendants may 

not challenge the validity of the Consent of Secure Investment Services, Inc., American 

Financial Services, Inc., and Lyndon Group, Inc. (“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 

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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 Commission’s motion for 

disgorgement and/or civil penalties, the parties may take discovery, including discovery from 

appropriate non-parties. 

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 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 Judgment forthwith and without further notice. 

Dated: January 10, 2008 

/s/ Ronald S. W. Lew_______________

UNITED STATES DISTRICT JUDGE 

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