UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

__________________________________________

:

UNITED STATES SECURITIES :

AND EXCHANGE COMMISSION, :

:

Plaintiff, :

: CASE NO. 2:14-cv-13902-MOB-MKM

v. :

:

The Estate of VINCENT JAMES SAVIANO, :

And PALMETTO INVESTMENTS, LLC, :

:

Defendants, :

_________________________________________ : 

FINAL JUDGMENT AS TO DEFENDANT PALMETTO INVESTMENTS, LLC

The Securities and Exchange Commission having filed a Complaint and Defendant 

Palmetto Investments, LLC (“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 Final Judgment without admitting or denying the allegations of the Complaint (except as to 

jurisdiction and except as otherwise provided herein in paragraph [VI]); waived findings of fact 

and conclusions of law; and waived any right to appeal from this Final 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 purchase or sale of any security:

(a) to employ any device, scheme, or artifice to defraud;

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(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 Final 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.

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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 Final 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).

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 Sections 206(1), 206(2) and 

206(4) of the Investment Advisers Act of 1940 (the “Advisers Act”) and Rule 206(4)-8 

thereunder while acting as investment advisers, by use of the mails, and the means and 

instrumentalities of interstate commerce, directly or indirectly, knowingly, willfully or 

recklessly: 

(a) to employ any device, scheme, or artifice to defraud their clients or prospective 

clients; 

(b) to engage in any transaction, practice or course of business which operates, or would 

operate, as a fraud or deceit upon their clients or prospective clients; or

(c) to engage in any act, practice, or course of business which is fraudulent, deceptive, or 

manipulative as defined in Rule 206(4)-8 of the Advisers Act [17 CFR § 275.206(4)-

8].

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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 Final 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).

IV.

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

is liable for disgorgement of $4,417,129.20, representing profits gained as a result of the conduct 

alleged in the Complaint, together with prejudgment interest thereon in the amount of 

$145,608.15, for a total of $4,562,737.35. To satisfy this disgorgement and prejudgment interest 

obligation, the Receiver in this matter has directed – and, if necessary shall continue to direct –

payment of assets from the Estate of the Receivership Defendant as directed by the Court in its 

orders for distribution until such time as the Court grants a motion to dissolve the Receivership.

V.

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.

VI. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely 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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Final 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).

VII.

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.

VIII. 

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: ______________, _____

____________________________________

UNITED STATES DISTRICT JUDGE

 

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