Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_90-cv-01563/USCOURTS-cand-3_90-cv-01563-0/pdf.json

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

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FILED 

JUN 1 .. 1990 

JOSEPH I. GOLDSTEIN 

RUDOLPH GERLICH, JR. 

RICHARD w. WIEK~ c E I v 

ClERK. u.s. DISTRICT COURT E 0 

NORTHERN DCS11UCT ~ CAUfORNIA 

· NAY J 1 1990. LEO F. ORENSTEIN 

STEPHEN N. YOUNG 

SECURITIES AND EXCHANGE 

450 Fifth Street, N.W. 

Washington, D.C. 20549 

Telephone: 202/272-3832 

COMMISSION J 

RICHARD 

CLER~ us W. WIEKING 

NORTHERN Disr:'S TRICT COURT 

• • !JCT OF CALifORNIA 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF ~FORNIA 

::::IT:::-::-::::::-::::c::~ 9 o .· 1 s 6 3 M~A ~~ : 90 C1V. ~ 

Plaintiff, 

v. 

JOSEPH BEHAR, DONALD CARTER, 

DOROTHY CARTER, DEBORAH 

CASTELLUCCI, MARY ALICE GRAVES, 

CHRISTOPHER SCOTT, JON TREDER, 

CHARLES DEVENPORT WAILES, and 

S. ADRIENNE WAILES, 

Defendants. 

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FINAL JUDGMENT OF 

PERMANENT INJUNCTION 

AND OTHER RELIEF AGAIN$T 

S. ADRIENNE WAILES 

Securities and,Exchange Commission commenced this 

action o~ ---~~--~~~---------' 1990, by filinq a complaint 

that defendant s. Adrienne Wailes violated 

21 section lO(b) of the Securities Exchange Act of J.934, 15 u.s.c. 

22 § 78j (b),. and Rule lOb-S ther~under, 17 C.F.R. § 240-~0b-5 •.. 

23 In a consent filed sim~ltaneously with the~pomplaint, Wailes 

24 waived service of process, entered a general appearance, admitted 

. 25 the j~risdiction of this Court over her and the subject matter·of 

l6 this action, waived the entry of findings of fact and conclusions 

ENTEHED IN CIVIl DOCKET _. _J_u_N , fg19~· 

-·-FINAL JUDGMENT AGAINST S.. ADRIENNE WAI·LES PAGE 1-

Case 3:90-cv-01563-MHP Document 11 Filed 03/31/90 Page 1 of 3
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of law under Rule 52 of the Federal Rules of Civil Procedure, 

and, without admitting or denying the allegations made in the 

complaint, consented to entry without further notice of this 

Final Judgment of Permanent Injunction enjoining her from 

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engaging in transactions, acts, practices, or courses of. business 

which constitute or would constitute violations of sectl~n lO(b) 

of the Exchange Act or Rule lOb-S thereunder. It appeari~g that 

this Cou~t has jurisdiction over the parties and the subject 

matter of this action, and the Court being fully advised in the 

premises, and there being no just reason for delay: 

I. 

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that S. Adrienne 

Wailes, her agents, servants, employees, attorneys-in-fact, and 

those persons in active concert and participation with her, and 

each of them, be and hereby are permanently restrained and 

enjoined from, directly or indirectly, by,use of any means or 

instrumentalities of interstate qommerce, or of the mails, or of 

any facility of any national securities exchaJ;lge, in connection 

with the purchase or sale of any security, 

(a) .._ employing any device, scheme, or artifice to defraud; 

(b) making any untrue statement of materi~l fact or· 

omitting to state a material fact necessary in order to ... make the statements made, in light ol the circumstances 

under which ~ey were made, not misleadinq; or 

FINAL JUDGMENT -AGAINST- S •. ADRIENNE WAILES ·- ~· PAGE 2 · 

Case 3:90-cv-01563-MHP Document 11 Filed 03/31/90 Page 2 of 3
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(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 lO(b) of the Exchange Ac~ and Rule 10b-5 

thereunder. 

II. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as soon 

as practi-cable a~? in any event no later than December 31, 1990, 

Wailes shall pay to the United States Treasury a civil penalty 

under section 21A of the Exchange Act, of 15 u.s.c. § 78u-1, in 

the amount of $78,130.50, plus interest thereon pursuant to 28 

u.s.c. § 1961. The amount of $78,130.50 represents the sum of 

$34,650 (the profit.gained by Donald carter and Dorothy Carter on. 

their purchase of Modulaire stock described in the complaint); 

$6,187.50 (the profit gained by Mary Alice Graves on her purchase 

of Modulaire stock described in the·complaint); $20,500 (half the 

profit gained by c. Devenport Wailes on his purchases of 

Modulaire ·stock described~in the complaint);•and $16,793 (half 

the p~of!t gained by Christopher Sco~t on his purchases of ._ 

Modulaire stock described in the complaint). 

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Dated: JUN 1- 1990 I -1990 

·- - ·-- - - . FINAL JUDGMEffr AGAINST S. ADRIENNE WAILES PAGE 3 

Case 3:90-cv-01563-MHP Document 11 Filed 03/31/90 Page 3 of 3