Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_20-cv-00180/USCOURTS-caed-2_20-cv-00180-1/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 28:1331 Fed. Question: Securities Violation

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Judgment of Permanent Injunction 1

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DEAN M. CONWAY

(counsel for service)

SARRA CHO

CHRISTOPHER NEE

Email: conwayd@sec.gov

Attorneys for Plaintiff

Securities and Exchange Commission

100 F Street NE

Washington, DC 20549

Telephone: (202) 551-4412

Facsimile: (202) 772-9245

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

SECURITIES AND EXCHANGE COMMISSION, C.A. No. 2:20-cv-00180-JAM-AC

Plaintiff,

v.

JEFFREY P. CARPOFF and PAULETTE CARPOFF,

Defendants.

JUDGMENT OF PERMANENT INJUNCTION

AS TO DEFENDANT JEFFREY P. CARPOFF

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

P. Carpoff (“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 Judgment; 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 Defendant is 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 

Case 2:20-cv-00180-DAD-DB Document 8 Filed 01/27/20 Page 1 of 4
Judgment of Permanent Injunction 2

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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 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 is 

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 the use 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.

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 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 

Case 2:20-cv-00180-DAD-DB Document 8 Filed 01/27/20 Page 2 of 4
Judgment of Permanent Injunction 3

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Defendant or with anyone described in (a).

III.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that the Court 

shall determine the amounts of any disgorgement of ill-gotten gains, prejudgment interest thereon, 

and civil penalty or penalties 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)], upon later motion of the 

Commission, if any. Prejudgment interest shall be calculated from February 21, 2014, based on the 

rate of interest used by the Internal Revenue Service for the underpayment of federal income tax as 

set forth in 26 U.S.C. § 6621(a)(2). In connection with the Commission’s motion for disgorgement 

and/or civil penalty or penalties, and at any hearing held on such a motion: (a) Defendant will be 

precluded from arguing that he did not violate the federal securities laws as alleged in the 

Complaint; (b) Defendant may not challenge the validity of the 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 

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 nonparties.

IV.

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.

V.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, 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 

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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).

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 Final Judgment forthwith and without further notice.

Dated: January 24, 2020

/s/ John A. Mendez________________________

UNITED STATES DISTRICT COURT JUDGE

Case 2:20-cv-00180-DAD-DB Document 8 Filed 01/27/20 Page 4 of 4