Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_07-cv-06423/USCOURTS-cand-3_07-cv-06423-24/pdf.json

Parties Involved:
Argyle Capital Management Corp
Defendant
Robert Olins
Defendant
Securities and Exchange Commission
Plaintiff
Spatialight, Inc
Defendant

Document Text:

JUDGMENT AS TO DEFENDANT

ROBERT OLINS 

SEC v. Olins, et al 

Case No. CV-07-6423-MMC

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

DEAN M. CONWAY (Trial Counsel) (DC Bar No. 457433) 

ConwayD@sec.gov 

DANIEL CHAUDOIN 

JEFFREY P. WEISS 

AMIE K. LONG 

SECURITIES AND EXCHANGE COMMISSION

100 F Street, N.E. 

Washington, DC 20549-4010 

Telephone: (202) 551-4412 (Conway) 

Facsimile: (202) 772-9246 (Conway) 

Counsel for Plaintiff 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

SECURITIES AND EXCHANGE COMMISSION, 

 Plaintiff, 

 vs. 

ROBERT OLINS, 

SPATIALIGHT, INC. and 

ARGYLE CAPITAL MANAGEMENT CORP., 

 Defendants. 

 

Case No. CV-07-6423-MMC 

[PROPOSED] JUDGMENT AS TO 

DEFENDANT 

ROBERT OLINS 

The United States Securities and Exchange Commission having filed a Complaint and Robert 

Olins (“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 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 Judgment: 

Case 3:07-cv-06423-MMC Document 123 Filed 11/25/09 Page 1 of 7
 JUDGMENT AS TO DEFENDANT 

ROBERT OLINS 

SEC v. Olins, et al 

Case No. CV-07-6423-MMC

-2-

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

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 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 (“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. 

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 Judgment by personal service or otherwise 

are permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 

(“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: 

Case 3:07-cv-06423-MMC Document 123 Filed 11/25/09 Page 2 of 7
 JUDGMENT AS TO DEFENDANT 

ROBERT OLINS 

SEC v. Olins, et al 

Case No. CV-07-6423-MMC

-3-

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

(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 Judgment by personal 

service or otherwise are permanently restrained and enjoined from violating, directly or indirectly, 

Section 13(b)(5) of the Exchange Act [15 U.S.C. § 78(m)(b)(5)] by knowingly circumventing or 

knowingly failing to implement a system of internal accounting controls or by knowingly falsifying 

any book, record, or account described in Section 13(b)(2) of the Exchange Act [15 U.S.C. § 

78m(2)]. 

IV. 

 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DEGREED 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 Judgment by personal 

service or otherwise are permanently restrained and enjoined from violating Exchange Act Rule 

13a-14 [17 C.F.R. § 240.13a-14], by falsely certifying that the Defendant has reviewed a periodic 

report containing financial statements which an issuer filed with the Commission pursuant to Section 

Case 3:07-cv-06423-MMC Document 123 Filed 11/25/09 Page 3 of 7
 JUDGMENT AS TO DEFENDANT 

ROBERT OLINS 

SEC v. Olins, et al 

Case No. CV-07-6423-MMC

-4-

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

13(a) of the Exchange Act [15 U.S.C. § 78m(a)] and that, based on his knowledge, for the period 

covered by the report, 

 (a) the report does not contain any untrue statement of material fact or omit to state a 

 material fact necessary in order to make the statements made, in light of the 

 circumstances under which such statements were made, not misleading; and 

 (b) the financial statements and other financial information included in the report 

 fairly present in all material respects the issuer’s financial condition, results of 

 operations and cash flow. 

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 Judgment by personal 

service or otherwise are permanently restrained and enjoined from aiding and abetting any 

violation of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act [15 U.S.C. §§ 

78m(a), 78m(b)(2)(A) and 78m(b)(2)(B)] and Rules 12b-20, 13a-1, and 13a-11 thereunder 

[17 C.F.R. §§ 240.12b-20, 240.13a-1, and 240.13a-11], by knowingly providing substantial 

assistance to an issuer having securities registered pursuant to Section 12 of the Exchange Act 

[15 U.S.C. § 78l], or any issuer which is required to file reports pursuant to Section 15(d) 

of the Exchange Act [15 U.S.C. § 78o(d)], by: 

(A) filing or causing to be filed any report required to be filed with the Securities and 

Exchange Commission pursuant to Section 13(a) of the Exchange Act [15 U.S.C. § 

78m(a)] and the rules and regulations promulgated thereunder, which contains any 

untrue statement of material fact, which omits to state any material fact necessary in 

Case 3:07-cv-06423-MMC Document 123 Filed 11/25/09 Page 4 of 7
 JUDGMENT AS TO DEFENDANT 

ROBERT OLINS 

SEC v. Olins, et al 

Case No. CV-07-6423-MMC

-5-

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

order to make the statements made, in light of the circumstances under which they 

were made, not misleading, or which omits to disclose any information required to be 

disclosed; or 

 (B) failing to make and keep books, records, and accounts which, in reasonable detail, 

 accurately and fairly reflect the transactions and dispositions of the assets of the 

 issuer; or 

 (C) failing to devise and maintain a system of internal accounting controls sufficient 

 to provide reasonable assurances that: (1) transactions are executed in accordance 

 with management’s general or specific authorization; (2) transactions are recorded 

 as necessary (a) to permit preparation of financial statements in conformity with 

 generally accepted accounting principles or any other criteria applicable 

 to such statements and (b) to maintain accountability for assets; (3) access to 

 assets is permitted only in accordance with management’s general or specific 

 authorization; and (4) the recorded accountability for assets is compared with the 

 existing assets at reasonable intervals and appropriate action is taken with respect 

 to any differences. 

VI. 

 IT IS 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 Judgment by personal service or otherwise are 

permanently restrained and enjoined from violating, directly or indirectly, Section 14(a) of the 

Exchange Act [15 U.S.C. §78n(a)] and Rule 14a-9 thereunder [17 C.F.R. §240.14a-9] by making 

solicitations by means of a proxy statement, form of proxy, notice of meeting or other 

Case 3:07-cv-06423-MMC Document 123 Filed 11/25/09 Page 5 of 7
 JUDGMENT AS TO DEFENDANT 

ROBERT OLINS 

SEC v. Olins, et al 

Case No. CV-07-6423-MMC

-6-

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

communication, written or oral, containing any statement which, at the time and in the light of the 

circumstances under which it is made, is false or misleading with respect to any material fact, or 

which omits to state any material fact necessary in order to make the statements therein not false or 

misleading or necessary to correct any statement in any earlier communication with respect to the 

solicitation of a proxy for the same meeting or subject matter which has become false or misleading. 

VII. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, upon motion of the 

Commission, the Court shall determine whether it is appropriate to order an officer and director bar 

pursuant to Section 21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and Section 20(e) of the 

Securities Act [15 U.S.C. § 77t(e)], and a civil penalty pursuant to Section 20(d) of the Securities Act 

[15 U.S.C. § 77t(d)], Section 21(d)(3) of the Exchange Act [15 U.S.C. §78ud(3)], and Section 21A(a) 

of the Exchange Act [15 U.S.C. § 78u-1(a)] and, if so, the amount of the civil penalty. In connection 

with the Commission’s motion for an officer and director bar and a civil penalty, 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, except as to Count One of the Complaint 

(Sections 5(a) and 5(c) of the Securities Act [15 U.S.C. §§ 77e(a) and (c)]); (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, except as to Count 

One of the Complaint (Sections 5(a) and 5(c) of the Securities Act [15 U.S.C. §§ 77e(a) and (c)]); 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. 

Case 3:07-cv-06423-MMC Document 123 Filed 11/25/09 Page 6 of 7
 JUDGMENT AS TO DEFENDANT 

ROBERT OLINS 

SEC v. Olins, et al 

Case No. CV-07-6423-MMC

-7-

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

In connection with the Commission’s motion for a civil penalty, the parties may take discovery, 

including discovery from appropriate non-parties. 

VIII. 

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. 

IX. 

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.

X. 

 There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil 

Procedure, the Clerk is directed to enter this Judgment forthwith and without further Notice. 

Dated: ______________, _____ 

____________________________________ 

UNITED STATES DISTRICT JUDGE 

Case 3:07-cv-06423-MMC Document 123 Filed 11/25/09 Page 7 of 7