Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_09-cv-00665/USCOURTS-caed-2_09-cv-00665-129/pdf.json

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

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[AMENDED PROPOSED] FINAL JUDGMENT 

AGAINST KENNETH KENITZER

1 SEC V. VASSALLO, ET AL. 

CASE NO. 2:09-CV-00665-LKK-DAD 

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JINA L. CHOI (NY Bar No. 2699718) 

MICHAEL S. DICKE (Cal. Bar No. 158187) 

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

 farnhaml@sec.gov 

MONIQUE C. WINKLER (Cal. Bar. No 213031) 

 winklerm@sec.gov 

Attorneys for Plaintiff 

SECURITIES AND EXCHANGE 

COMMISSION 

44 Montgomery Street, Suite 2800 

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, 

 vs. 

ANTHONY VASSALLO, et al. 

 Defendants. 

Case No. 2:09-CV-00665-LKK-DAD

[AMENDED] 

FINAL JUDGMENT 

AGAINST KENNETH KENITZER 

This matter came on for hearing on the motion of plaintiff Securities and Exchange 

Commission (“Commission”) for issuance of a final judgment against defendant Kenneth 

Kenitzer. Having considered the papers and argument submitted in support of the motion, 

there being no opposition, the Commission’s motion is hereby GRANTED, as follows: 

I. 

IT IS ORDERED THAT Kenitzer and his 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, in the offer or sale of any securities, by the use of any means or 

Case 2:09-cv-00665-JAM-KJN Document 514 Filed 07/09/14 Page 1 of 6
[AMENDED PROPOSED] FINAL JUDGMENT 

AGAINST KENNETH KENITZER

2 SEC V. VASSALLO, ET AL. 

CASE NO. 2:09-CV-00665-LKK-DAD 

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

mails, directly or indirectly: 

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

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 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 of 1933 (“Securities Act”) [15 U.S.C. § 

77q(a)]. 

II. 

IT IS FURTHER ORDERED THAT Kenitzer and his 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, 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; 

Case 2:09-cv-00665-JAM-KJN Document 514 Filed 07/09/14 Page 2 of 6
[AMENDED PROPOSED] FINAL JUDGMENT 

AGAINST KENNETH KENITZER

3 SEC V. VASSALLO, ET AL. 

CASE NO. 2:09-CV-00665-LKK-DAD 

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in connection with the purchase or sale of any security, 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]. 

III. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Kenitzer shall pay 

disgorgement of his ill-gotten gains in the amount of $43,288,725.08 plus prejudgment 

interest of $874,048.92, for a total of $44,162,774.00. Defendant shall satisfy this obligation 

by paying $44,162,774.00 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 

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

of this Court; Kenneth Kenitzer 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 hold the funds (collectively, the “Fund”) and may propose a 

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[AMENDED PROPOSED] FINAL JUDGMENT 

AGAINST KENNETH KENITZER

4 SEC V. VASSALLO, ET AL. 

CASE NO. 2:09-CV-00665-LKK-DAD 

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plan to distribute the Fund subject to the Court’s approval. 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. 

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. 

Defendant is also subject to a restitution order of $43,288,725.08 in a separate 

criminal proceeding, U.S. v. Kenitzer, 2:09-cr-00459-GEB (E.D. Cal.). All payments the 

Defendant makes pursuant to that restitution order will be credited against his disgorgement 

obligation under this Final Judgment. In addition, all payments made by Defendant Anthony 

Vassallo, either pursuant to any order of disgorgement arising from this action or pursuant to 

the restitution order in the criminal proceeding U.S. v. Vassallo, 2:09-cr-00179-GEB (E.D. 

Cal.), will be credited against Kenitzer’s disgorgement obligation under this Final Judgment. 

IV. 

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

pay a civil penalty in the amount of $390,000 to the Securities and Exchange Commission 

pursuant to 15 U.S.C. § 77t(d)(2) (Securities Act) and 15 U.S.C. § 78u(d) (Exchange Act). 

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 

Case 2:09-cv-00665-JAM-KJN Document 514 Filed 07/09/14 Page 4 of 6
[AMENDED PROPOSED] FINAL JUDGMENT 

AGAINST KENNETH KENITZER

5 SEC V. VASSALLO, ET AL. 

CASE NO. 2:09-CV-00665-LKK-DAD 

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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; Kenneth Kenitzer 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. Defendant shall pay postjudgment interest on any delinquent amounts pursuant to 28 USC § 1961. 

V. 

 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent of 

Defendant Kenneth Kenitzer to Judgment of Permanent Injunction and Other Relief (Docket 

No. 127) 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. 

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[AMENDED PROPOSED] FINAL JUDGMENT 

AGAINST KENNETH KENITZER

6 SEC V. VASSALLO, ET AL. 

CASE NO. 2:09-CV-00665-LKK-DAD 

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Date: July 8, 2014 

 

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