IN THE UNITED STATES DISTRICT COURT

FOR THE WESTERN DISTRICT OF TEXAS

SAN ANTONIO DIVISION

SECURITIES AND EXCHANGE )

COMMISSION, )

)

Plaintiff, )

)

V. ) CIVIL ACTION NO. SA-20-CA-598-FB

)

PAUL R. MONTGOMERY, JR., and )

MICHAEL D. FISHER, )

)

 Defendants. )

FINAL JUDGMENT BY DEFAULT AS TO

DEFENDANTS PAUL R. MONTGOMERY, JR. AND MICHAEL D. FISHER

Plaintiff Securities and Exchange Commission (“Plaintiff” or “the Commission”) filed a

Complaint (“Complaint”) in this action, Defendants Paul R. Montgomery, Jr. (“Montgomery”) and

Michael D. Fisher (“Fisher”) failed to answer or to otherwise defend itself, and the District Clerk

entered defaults against Montgomery and Fisher. Thereafter, the Commission filed a Motion for Final

Judgment by Default against Montgomery and Fisher, which the Court granted. Therefore:

I.

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Montgomery and Fisher are

each 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:

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(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.

ITIS 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 bypersonal service or otherwise: (a) each of Montgomery’s and Fisher’s officers,

agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with

each of Montgomery, Fisher, or with anyone described in (a).

II.

IT IS HEREBYFURTHER ORDERED, ADJUDGED, AND DECREED that Montgomeryand

Fisher are each 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 orderto 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 bypersonal service or otherwise: (a) each of Montgomery’s and Fisher’s officers,

agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with

each of Montgomery, Fisher or with anyone described in (a).

III.

IT IS HEREBYFURTHER ORDERED,ADJUDGED, AND DECREED that Montgomeryand

Fisher are each 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 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

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of this Final Judgment bypersonal service or otherwise: (a) each of Montgomery’s and Fisher’s officers,

agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with

each of Montgomery, Fisher, or with anyone described in (a).

IV.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Montgomery is

liable for disgorgement of $640,868, representing net profits gained as a result of the conduct alleged

in the Complaint, together with prejudgment interest thereon in the amount of $118,734.89, and a civil

penalty in the amount of $2,891,520 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)]; and that Fisher is liable for

disgorgement of $360,611, representing net profits gained as a result of the conduct alleged in the

Complaint, together with prejudgment interest thereon in the amount of $63,977.35, and a civil penalty

in the amount of $2,891,520 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)]. Montgomery shall satisfy this obligation

bypaying $640,868 in disgorgement, plus $118,734.89 in prejudgment interest, plus $2,891,520 in civil

penalty for a total amount of $3,651,122.89 to the Securities and Exchange Commission within 30 days

after entry of this Final Judgment. Fisher shall satisfy this obligation by paying $360,611 in

disgorgement, plus $63,977.35 in prejudgment interest, plus $2,891,520 in civil penalty for a total

amount of $3,316,108.35 to the Securities and Exchange Commission within 30 days after entry of this

Final Judgment. 

Each of Montgomeryand Fishermaytransmit payment electronicallyto the Commission, which

will provide detailed ACH transfer/Fedwire instructions upon request. Payment may also be made

directly from a bank account via Pay.gov through the SEC website at

http://www.sec.gov/about/offices/ofm.htm. Each of Montgomery and Fisher may also pay by certified

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check, bank cashier’s check, or United States postal money order payable to the Securities and

Exchange Commission, which shall be delivered or mailed to

Enterprise Services Center

Accounts Receivable Branch

6500 South MacArthur Boulevard

Oklahoma City, OK 73169

and shall be accompanied by a letter identifying the case title, civil action number, and name of this

Court; [Defendant’s name] as a defendant in this action; and specifying that payment is made pursuant

to this Final Judgment.

Each of Montgomery and Fisher shall simultaneously transmit photocopies of evidence of

payment and case identifying information to the Commission’s counsel in this action. By making this

payment, each of Montgomery and Fisher relinquishes all legal and equitable right, title, and interest

in such funds and no part of the funds shall be returned to Montgomery or Fisher.

The Commission may enforce the Court’s judgment for disgorgement and prejudgment interest

by using all collection procedures authorized by law, including, but not limited to, moving for civil

contempt at any time after 30 days following entry of this Final Judgment.

The Commission may enforce the Court’s judgment for penalties by the use of all collection

procedures authorized by law, including the Federal Debt Collection Procedures Act, 28 U.S.C. § 3001

et seq., and moving for civil contempt for the violation of any Court orders issued in this action. Each

of Montgomery and Fisher shall pay post judgment interest on any amounts due after 30 days of the

entry of this Final Judgment pursuant to 28 U.S.C. § 1961. The Commission shall hold the funds,

together with any interest and income earned thereon (collectively, the “Fund”), pending further order

of the Court.

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The Commission may propose a plan to distribute the Fund subject to the Court’s approval.

Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund provisions of

Section 308(a) of the Sarbanes-Oxley Act of 2002. The Court shall retain jurisdiction over the

administration of any distribution of the Fund and the Fund may only be disbursed pursuant to an Order

of the Court.

Regardless of whether any such Fair Fund distribution is made, amounts ordered to be paid as

civil penalties pursuant to this Judgment shall be treated as penalties paid to the government for all

purposes, including all tax purposes. To preserve the deterrent effect of the civil penalty, each of

Montgomery and Fisher shall not, after offset or reduction of any award of compensatory damages in

anyRelated Investor Action based on each of Montgomery’s and Fisher’s payment of disgorgement in

this action, argue that he is entitled to, nor shall he further benefit by, offset or reduction of such

compensatory damages award by the amount of any part of his payment of a civil penalty in this action

(“Penalty Offset”). If the court in any Related Investor Action grants such a Penalty Offset, Defendant

shall, within 30 days after entry of a final order granting the Penalty Offset, notify the Commission’s

counsel in this action and pay the amount of the Penalty Offset to the United States Treasury or to a Fair

Fund, as the Commission directs. Such a payment shall not be deemed an additional civil penalty and

shall not be deemed to change the amount of the civil penalty imposed in this Judgment. For purposes

of this paragraph, a “Related Investor Action” means a private damages action brought against

Montgomery and/or Fisher by or on behalf of one or more investors based on substantially the same

facts as alleged in the Complaint in this action. 

V.

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

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allegations in the Complaint are true and admitted by Montgomery and Fisher, and further, any debt for

disgorgement, prejudgment interest, civil penalty or other amounts due by each of Montgomery and

Fisher under this 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 each of Montgomery

and Fisher 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 Final 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.

It is so ORDERED.

SIGNED this 20th day of January, 2021.

 _________________________________________________

 FRED BIERY

 UNITED STATES DISTRICT JUDGE

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