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IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF ARIZONA 

 

Securities and Exchange Commission, No. CV-__-__-PHX-___ 

Plaintiff, 

v. [PROPOSED] FINAL JUDGMENT AS 

TO LANNY BROWN AND SEAN FOX 

Lanny Brown and Sean Fox, 

 Defendants. 

 

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

Complaint and Defendants Lanny Brown and Sean Fox (collectively, “Defendants”) 

having entered a general appearance; consented to the Court’s jurisdiction over 

Defendants and the subject matter of this action; consented to entry of this Final 

Judgment; 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 Defendants are 

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. 

 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 

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following who receive actual notice of this Final Judgment by personal service or 

otherwise: (a) Defendants’ officers, agents, servants, employees, and attorneys; and (b) 

other persons in active concert or participation with Defendants or with anyone described 

in (a). 

II. 

 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendants are jointly and severally liable for disgorgement of $369,720, representing 

profits gained as a result of the conduct alleged in the Complaint, together with 

prejudgment interest thereon in the amount of $43,147.79. This disgorgement amount is 

offset by a $298,503.24 credit, representing the amount Defendants are subject to pay in 

United States v. Lanny Brown, et. al., Case No. 17-CR-01423. Defendants shall satisfy 

this obligation by paying $114,364.55 to the Securities and Exchange Commission within 

14 days after entry of this Final Judgment. 

 Defendants may transmit payment electronically to 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 Commission’s website at 

http://www.sec.gov/about/offices/ofm.htm. Defendants may also pay by certified 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 

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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; Lanny Brown and Sean Fox as defendants in this action; and 

specifying that payment is made pursuant to this Final Judgment. 

Defendants shall simultaneously transmit photocopies of evidence of payment and 

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

payment, Defendants relinquish all legal and equitable rights, titles, and interests in such 

funds and no part of the funds shall be returned to Defendants. The Commission shall 

send the funds paid pursuant to this Final Judgment to the United States Treasury. 

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

prejudgment interest by moving for civil contempt (and/or through other collection 

procedures authorized by law) at any time after 14 days following entry of this Final 

Judgment. Defendants shall pay post judgment interest on any delinquent amounts 

pursuant to 28 U.S.C. § 1961. 

III. 

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 Defendants, and further, 

any debt for disgorgement, prejudgment interest, civil penalty or other amounts due by 

Defendants under this Final Judgment or any other judgment, order, consent order, decree 

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or settlement agreement entered in connection with this proceeding, is a debt for the 

violation by Defendants 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. 

 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. 

V. 

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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