Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_15-cv-04091/USCOURTS-cand-5_15-cv-04091-1/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:77 Securities Fraud

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SEC v. JOHN MCENERY IV

[PROPOSED] FINAL JUDGMENT

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JINA L. CHOI (New York State Bar No. 2699718) 

 choij@sec.gov 

STEVEN D. BUCHHOLZ (State Bar No. 202638) 

 buchholzs@sec.gov 

ELENA RO (State Bar No. 197308) 

 roe@sec.gov

44 Montgomery Street, Suite 2800 

San Francisco, California 94104 

Telephone: (415) 705-2500 

Facsimile: (415) 705-2501 

JOSEPH G. SANSONE (NY State Bar No. 4043659)

Brookfield Place 

200 Vesey Street, Suite 400 

New York, New York 10281 

Telephone: (212) 336-1100 

Attorneys for Plaintiff

SECURITIES AND EXCHANGE COMMISSION

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,

v. 

JOHN MCENERY IV, 

Defendant. 

Case No. FY%/)

[PROPOSED] FINAL JUDGMENT AS TO 

JOHN MCENERY IV

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

McEnery IV 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 and except as 

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

Case 5:15-cv-04091-BLF Document 10 Filed 09/10/15 Page 1 of 6
SEC v. JOHN MCENERY IV

[PROPOSED] FINAL JUDGMENT

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otherwise provided herein in paragraph IV); 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;

(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 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 14(e) of the Exchange Act [15 U.S.C. 

Case 5:15-cv-04091-BLF Document 10 Filed 09/10/15 Page 2 of 6
SEC v. JOHN MCENERY IV

[PROPOSED] FINAL JUDGMENT

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§ 78n(e)] and Rule 14e-3 [17 C.F.R. § 240.14e-3] promulgated thereunder, in connection with any 

tender offer or request or invitation for tenders, from engaging in any fraudulent, deceptive, or 

manipulative act or practice, by:

(a) purchasing or selling or causing to be purchased or sold the securities sought or to be 

sought in such tender offer, securities convertible into or exchangeable for any such 

securities or any option or right to obtain or dispose of any of the foregoing securities 

while in possession of material information relating to such tender offer that 

Defendant knows or has reason to know is nonpublic and knows or has reason to know 

has been acquired directly or indirectly from the offering person; the issuer of the 

securities sought or to be sought by such tender offer; or any officer, director, partner, 

employee or other person acting on behalf of the offering person of such issuer, unless 

within a reasonable time prior to any such purchase or sale such information and its 

source are publicly disclosed by press release or otherwise; or

(b) communicating material, nonpublic information relating to a tender offer, which 

Defendant knows or has reason to know is nonpublic and knows or has reason to know 

has been acquired directly or indirectly from the offering person; the issuer of the

securities sought or to be sought by such tender offer; or any officer, director, partner, 

employee, advisor, or other person acting on behalf of the offering person of such 

issuer, to any person under circumstances in which it is reasonably foreseeable that 

such communication is likely to result in the purchase or sale of securities in the 

manner described in subparagraph (a) above, except that this paragraph shall not apply 

to a communication made in good faith

i. to the officers, directors, partners or employees of the offering person, to its 

advisors or to other persons, involved in the planning, financing, 

preparation or execution of such tender offer;

ii. to the issuer whose securities are sought or to be sought by such tender 

offer, to its officers, directors, partners, employees or advisors or to other 

Case 5:15-cv-04091-BLF Document 10 Filed 09/10/15 Page 3 of 6
SEC v. JOHN MCENERY IV

[PROPOSED] FINAL JUDGMENT

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persons involved in the planning, financing, preparation or execution of the 

activities of the issuer with respect to such tender offer; or 

iii. to any person pursuant to a requirement of any statute or rule or regulation 

promulgated thereunder. 

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). 

III. 

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

liable for disgorgement of $3,288, representing profits gained as a result of the conduct alleged in the 

Complaint, together with prejudgment interest thereon in the amount of $497.92, and a civil penalty 

in the amount of $3,288 pursuant to Section 21A(a)(1)(A) of the Exchange Act [15 U.S.C. § 78u1(a)(1)(A)], for a total of $7,073.92. Defendant shall satisfy this obligation by paying $7,073.92 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 

Case 5:15-cv-04091-BLF Document 10 Filed 09/10/15 Page 4 of 6
SEC v. JOHN MCENERY IV

[PROPOSED] FINAL JUDGMENT

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

Court; John McEnery IV 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.

IV.

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 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 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).

Case 5:15-cv-04091-BLF Document 10 Filed 09/10/15 Page 5 of 6
SEC v. JOHN MCENERY IV

[PROPOSED] FINAL JUDGMENT

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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 this Court shall retain 

jurisdiction of this matter for the purposes of enforcing the terms of this Final 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 Final Judgment forthwith and without further notice. 

Dated: ______________, 2015 

____________________________________ 

UNITED STATES DISTRICT JUDGE

6HSWHPEHU

Case 5:15-cv-04091-BLF Document 10 Filed 09/10/15 Page 6 of 6