Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_14-cv-00122/USCOURTS-cand-3_14-cv-00122-8/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

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

SECURITIES AND EXCHANGE 

COMMISSION,

Plaintiff,

v.

STEVEN NEIL,

Defendant.

Case No. 14-cv-122-WHA

FINAL JUDGMENT AS TO DEFENDANT 

STEVEN NEIL

The Securities and Exchange Commission having filed a Complaint, and defendant 

Steven Neil (“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 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 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 

using 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 operates or 

would operate as a fraud or deceit upon the purchaser.

III.

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 13(b)(5) of the 

Exchange Act [15 U.S.C. § 78m(b)(5)] by knowingly circumventing a system of internal 

accounting controls, failing to implement a system of internal accounting controls, or falsifying 

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any book, record, or account described in Paragraph 2 of Section 13(b) of the Exchange Act 

[15 U.S.C. § 78m(b)(2)].

IV.

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 Rule 13b2-1 of the Exchange 

Act [17 C.F.R. § 240.13b2-1] by falsifying or causing to be falsified any book, record, or account 

subject to Section 13(b)(2)(A) of the Exchange Act [15 U.S.C. § 78m(b)(2)(A)].

V.

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 Rule 13b2-2 [17 C.F.R. 

§ 240.13b2-2], directly or indirectly, as an officer or director of an issuer, by—

(a) making or causing to be made a materially false or misleading statement to an 

accountant; or

(b) omitting to state, or causing another person to omit to state, any material fact 

necessary in order to make a statement made, in light of the circumstances under 

which such statements are made, not misleading—

to an accountant in connection with a required audit or examination of the financial statements 

of an issuer, or in connection with the preparation or filing of any document or report required to 

be filed with the Commission by the issuer.

VI.

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 Rule 13a-14 [17 C.F.R. 

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§ 240.13a-14] by signing false or misleading certifications required to be made pursuant to 

Rule 13a-14 of the Exchange Act.

VII.

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 

(5) 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)].

VIII.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay a 

civil penalty in the amount of $125,000.00 to the Securities and Exchange Commission pursuant 

to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d) of the Exchange Act 

[15 U.S.C. § 78u(d)]. Defendant shall make this payment 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; Steven Neil as a defendant in this action; and specifying that payment is made 

pursuant to this Final Judgment. 

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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 may enforce the Court’s judgment for the civil penalty 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. The Commission shall hold the funds, 

together with any interest and income earned thereon (collectively, the “Fund”), pending further 

order of the Court. 

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

approval. Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund 

provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. The Court shall retain 

jurisdiction over the administration of any distribution of the Fund. If the Commission staff 

determines that the Fund will not be distributed, the Commission shall send the funds paid 

pursuant to this Final Judgment to the United States Treasury.

Regardless of whether any such Fair Fund distribution is made, amounts ordered to be 

paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the 

government for all purposes, including all tax purposes. To preserve the deterrent effect of the 

civil penalty, Defendant shall not, after offset or reduction of any award of compensatory 

damages in any Related Investor Action, argue that he is entitled to, nor shall he further benefit 

by, offset or reduction of such compensatory damages award by the amount of any part of 

Defendant’s payment of a civil penalty in this action (“Penalty Offset”). If the court in any 

Related Investor Action grants such a Penalty Offset, Defendant shall, within 30 days after entry 

of a final order granting the Penalty Offset, notify the Commission’s counsel in this action and 

pay the amount of the Penalty Offset to the United States Treasury or to a Fair Fund, as the 

Commission directs. Such a payment shall not be deemed an additional civil penalty and shall 

not be deemed to change the amount of the civil penalty imposed in this Judgment. For purposes 

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of this paragraph, a “Related Investor Action” means a private damages action brought against 

Defendant by or on behalf of one or more investors based on substantially the same facts as 

alleged in the Complaint in this action.

IX. 

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 agreements set forth therein, including, but not limited to, his 

agreement to waive and release any and all legal and equitable claims, or any potential causes of 

action whatsoever, that relate to, or arise out of, any and all of the securities listed in Exhibit A to 

the Consent. 

X. 

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 

Dated: _ ____, _____ 

____________________________________ 

UNITED STATES DISTRICT JUDGE

 

Final Judgment for five years. February 2 2015.

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