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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

Case No. 0:22-cv-61609-WPD

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,

v.

PAVEL RUIZ,

Defendant.

JUDGMENT AS TO DEFENDANT PAVEL RUIZ 

THIS CAUSE comes before the Court upon Plaintiff Securities and Exchange 

Commission’s Unopposed Motion for Entry of Judgment Against Defendant Pavel Ruiz (the 

“Motion”). [DE 14]. The Court has carefully considered the Motion [DE 14] and is otherwise fully 

advised in the premises.

The Securities and Exchange Commission (“SEC” or “Commission”) having filed a 

Complaint and Defendant Pavel Ruiz (“Ruiz” or “Defendant”) having entered a general 

appearance; consented to the Court’s jurisdiction over him 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, the Court finds that good cause exists for entry of this

Judgment. Accordingly, the Commission’s Motion [DE 14] is GRANTED and the Court orders 

as follows:

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I.

PERMANENT INJUNCTIVE RELIEF

A.

Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) 

and Rule 10b-5 thereunder

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 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, 

by, directly or indirectly, (i) creating a false appearance or otherwise deceiving any person, or (ii) 

disseminating false or misleading documents, materials, or information or making, either orally or 

in writing, any false or misleading statement in any communication with any investor or 

prospective investor, about:

(a) any investment in or offering of securities;

(b) the prospects for success of any business, product, or company; 

(c) any returns on investment; 

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(d) the use of investor funds or investment proceeds; or

(e) the misappropriation or misuse of investor funds or investment proceeds.

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).

B.

Section 17(a) of the Securities Act of 1933 (“Securities Act”)

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,

by, directly or indirectly, (i) creating a false appearance or otherwise deceiving any person, or (ii) 

disseminating false or misleading documents, materials, or information or making, either orally or 

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in writing, any false or misleading statement in any communication with any investor or 

prospective investor, about:

(a) any investment in or offering of securities;

(b) the prospects for success of any business, product, or company;

(c) any returns on investment; 

(d) the use of investor funds or investment proceeds; or

(e) the misappropriation or misuse of investor funds or investment proceeds.

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).

C.

Section 5 of the Securities Act

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendant is permanently restrained and enjoined from violating Section 5 of the Securities Act 

[15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable exemption:

(a) 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;

(b) 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 

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

or

(c) 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].

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).

D.

Section 15(a)(1) of the Exchange Act 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 

15(a)(1) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78o(a)(1)] by 

making use of any means or instrumentality of interstate commerce or of the mails and engaging 

in the business of effecting transactions in securities for the accounts of others, or inducing or 

effecting the purchase and sale of securities, while not registered with the Commission in 

accordance with the provisions of Section 15(b) of the Exchange Act, or while not associated with 

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a broker-dealer that was so registered.

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. 

DISGORGEMENT, PREJUDGMENT INTEREST AND CIVIL PENALTY

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendant shall pay disgorgement of ill-gotten gains, prejudgment interest thereon, and a civil 

penalty 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)]. The Court shall determine the amounts of the 

disgorgement and civil penalty at a hearing upon motion of the Commission. Prejudgment interest 

shall be calculated from June 1, 2020, 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 hearing on the Commission’s motion for disgorgement and/or civil penalties: 

(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 

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Commission’s motion for disgorgement and/or civil penalties, the parties may take discovery, 

including discovery from appropriate non-parties.

III. 

BANKRUPTCY NONDISCHARGEABILITY

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 

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). 

IV.

INCORPORATION OF CONSENT

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. 

RETENTION OF JURISDICTION

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.

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VI. 

RULE 54(b) CERTIFICATION

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 Judgment forthwith and without further notice.

VII.

ADMINSITRATIVE CLOSURE

The Clerk is directed to ADMINISTRATIVELY CLOSE this case.

DONE AND ORDERED in Chambers at Fort Lauderdale, Florida this 27th day of April, 

2023.

 

Copies furnished to:

All Counsel of Record 

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