Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_07-cv-01251/USCOURTS-caed-1_07-cv-01251-2/pdf.json

Parties Involved:
Pierre Cote
Defendant
Faceprint Global Solutions, Inc.
Defendant
Securities and Exchange Commission
Plaintiff

Document Text:

FINAL JUDGMENT OF PIERRE COTE 

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MARC J. FAGEL (Cal. Bar No. 154425) 

SUSAN F. LA MARCA (Cal. Bar No. 215231) 

JEREMY E. PENDREY (Cal. Bar No. 187075) 

 

Attorneys for Plaintiff 

SECURITIES AND EXCHANGE COMMISSION 

44 Montgomery Street, Suite 2600 

San Francisco, California 94104 

Telephone: (415) 705-2500 

Facsimile: (415) 705-2501 

Plaintiff Securities and Exchange Commission (“Commission”) has filed a Complaint 

(“Complaint”) in this action and defendant Pierre Cote (“Cote”) has entered a general appearance and 

has submitted the Consent of Pierre Cote to FinalJudgment (“Consent”). In the Consent, Cote 

acknowledged service of the Summons and the Complaint, admitted the jurisdiction of this Court over 

him and over the subject matter of this action, admitted that he was fully advised and informed of the 

right to a judicial determination of this matter, waived findings of fact and conclusions of law as 

provided by Rule 52 of the Federal Rules of Civil Procedure, consented to the entry of this Final 

Judgment, without admitting or denying any of the allegations in the Complaint except as set forth in the 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

FRESNO DIVISION 

SECURITIES AND EXCHANGE COMMISSION,

 Plaintiff, 

vs. 

FACEPRINT GLOBAL SOLUTIONS, INC.; and 

PIERRE COTE, 

 Defendants. 

 

Case No. 1:07-01251-OWW-GSA

FINAL JUDGMENT AGAINST 

DEFENDANT PIERRE COTE 

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Consent, and waived notice of hearing upon the entry of this FinalJudgment. The Court, being fully 

advised, orders as follows: 

I. 

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Cote and his agents, 

servants, employees, those with powers of attorney on his behalf, and all persons in active concert or 

participation with any of them, who receive actual notice of this Final Judgment, by personal service 

or otherwise, and each of them, are permanently enjoined and restrained from, directly or indirectly, 

violating Sections 5(a) and (c) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77e(a) 

and 77e(c)] by, directly or indirectly, in the absence of any applicable exemption: 

1. Unless a registration statement is in effect as to a security, making use of any means or 

instruments of transportation or communication in interstate commerce or of the mails to sell 

such security through the use or medium of any prospectus or otherwise; 

2. Unless a registration statement is in effect as to a security, carrying or causing to be carried 

through the mails or in interstate commerce, by any means or instruments of transportation, 

any such security for the purpose of sale or for delivery after sale; or 

3. Making use of any means or instruments of transportation or communication in interstate 

commerce or of the mails to offer to sell or offer to buy through the use or medium of any 

prospectus or otherwise any security, unless a registration statement has been filed with the 

Commission as to such security, or while the registration statement is the subject of a refusal 

order or stop order or (prior to the effective date of the registration statement) any public 

proceeding or examination under Section 8 of the Securities Act [15 U.S.C. § 77h]. 

II. 

IT IS HEREBY ORDERED, ADJUDGED AND DECREED that Cote and his agents, 

servants, employees, those with powers of attorney on his behalf, and all persons in active concert or 

participation with any of them, who receive actual notice of this Final Judgment, by personal service 

or otherwise, and each of them, are permanently enjoined and restrained from, directly or indirectly, 

violating Rule 101 of Regulation M under the Securities Exchange Act of 1934 (“Exchange Act”) [17 

C.F.R. § 242.101] thereunder by, in connection with a distribution of a security, directly or indirectly, 

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bidding for, purchasing, or attempting to induce any person to bid for or purchase the security during 

the applicable restricted period, in the absence of any applicable exception. 

III. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Cote and his agents, 

servants, employees, those with powers of attorney on his behalf, and all persons in active concert or 

participation with any of them, who receive actual notice of this Final Judgment, by personal service 

or otherwise, and each of them, are permanently enjoined and restrained from violating Section 13(d) 

of the Exchange Act [15 U.S.C. § 78m(d)] and Rules 13d-1 and 13d-2 promulgated thereunder [17 

C.F.R. §§ 240.13d-1 and 240.13d-2] by failing, with respect to any issuer registered pursuant to 

Section 12 of the Exchange Act [15 U.S.C. § 78l] in which Cote acquires the beneficial ownership of 

more than 5 percent of its common stock, to file with the Commission within 10 days Schedule 13D, 

and to file an amendment when material changes occur pursuant to Section 13(d) of the Exchange 

Act [15 U.S.C. § 78m(d)]. 

IV. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Cote and his agents, 

servants, employees, those with powers of attorney on his behalf, and all persons in active concert or 

participation with any of them, who receive actual notice of this Final Judgment, by personal service 

or otherwise, and each of them, are permanently enjoined and restrained from violating Section 16(a) 

of the Exchange Act [15 U.S.C. § 78p(a)] and Rule 16a-3 [17 C.F.R. § 240.16a-3] thereunder by 

failing, with respect to any issuer registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 

78l] of which Cote is an officer, director, or beneficial owner of more than ten percent of its common 

stock, to file with the Commission the required forms disclosing his beneficial ownership of those 

securities and changes thereto. 

V. 

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Cote is permanently 

barred from participating in an offering of a penny stock (as provided in Rule 3a51-1 under the 

Exchange Act [17 C.F.R. § 240.3a51-1]), including engaging in activities with a broker, dealer, or 

issuer for purposes of issuing, trading, or inducing or attempting to induce the purchase or sale of any 

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penny stock, pursuant to Securities Act Section 20(g) [15 U.S.C. § 77t(g)] and Exchange Act Section 

21(d)(6) [15 U.S.C. § 78u(d)(6)]. 

VI. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Cote is jointly and 

severally liable, along with defendant FacePrint Global Solutions, Inc., for disgorgement of 

$1,474,686.93, representing profits gained as a result of the conduct alleged in the Complaint, 

together with prejudgment interest thereon in the amount of $99,138.31, for a total of $1,573,825.24. 

Based on Cote’s sworn representations in his Statement of Financial Condition dated September 8, 

2007, and other documents and information submitted to the Commission, however, the Court is not 

ordering Cote to pay a civil penalty and payment of all of the disgorgement and prejudgment interest 

thereon is waived. The determination not to impose a civil penalty and to waive payment of all of the 

disgorgement and pre-judgment interest is contingent upon the accuracy and completeness of Cote’s 

Statement of Financial Condition. If at any time following the entry of this Final Judgment the 

Commission obtains information indicating that Cote’s representations to the Commission 

concerning his assets, income, liabilities, or net worth were fraudulent, misleading, inaccurate, or 

incomplete in any material respect as of the time such representations were made, the Commission 

may, at its sole discretion and without prior notice to Cote of its intent to so petition, petition the 

Court for an order requiring Cote to pay the unpaid portion of the disgorgement, pre-judgment and 

post-judgment interest thereon, and the maximum civil penalty allowable under the law. In 

connection with any such petition, the only issue shall be whether the financial information provided 

by Cote was fraudulent, misleading, inaccurate, or incomplete in any material respect as of the time 

such representations were made. In its petition, the Commission may move this Court to consider all 

available remedies, including, but not limited to, ordering Cote to pay funds or assets, directing the 

forfeiture of any assets, or sanctions for contempt of this Final Judgment. The Commission may also 

request additional discovery. Cote may not, by way of defense of such petition: (1) challenge the 

validity of the Consent or this Final Judgment; (2) contest the allegations in the Complaint filed by 

the Commission; (3) assert that payment of disgorgement, pre-judgment and post-judgment interest 

or a civil penalty should not be ordered; (4) contest the amount of disgorgement and pre-judgment 

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and post-judgment interest; (5) contest the imposition of the maximum civil penalty allowable under 

the law; or (6) assert any defense to liability or remedy, including, but not limited to, any statute of 

limitations defense. 

VII. 

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 Cote shall 

comply with all of the undertakings and agreements set forth therein. 

VIII. 

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. 

IX. 

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 31, 2008 

 /s/ OLIVER W. WANGER 

 UNITED STATES DISTRICT JUDGE 

 

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APPROVED AS TO FORM: 

 

H. Thomas Fehn 

Fields, Fehn & Sherwin 

11755 Wilshire Blvd., 15th Floor 

Los Angeles, CA 90025 

(310) 473-6338 

Attorney for Defendant 

PIERRE COTE 

SUBMITTED BY: 

 

Jeremy E. Pendrey 

Attorneys for Plaintiff 

SECURITIES AND EXCHANGE COMMISSION 

44 Montgomery Street, Suite 2600 

San Francisco, California 94104 

Telephone: (415) 705-2500 

Fax: (415) 705-2501 

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