Source: https://docs.justia.com/cases/federal/district-courts/california/cacdce/2:2016cv07333/659490/48
Timestamp: 2017-10-18 03:52:14
Document Index: 115420598

Matched Legal Cases: ['§ 15', '§ 240', '§ 77', '§ 77', '§ 77', '§ 1961']

FINAL JUDGMENT AS TO DEFENDANT MARCUS A for Securities and Exchange Commission v. Marcus A. Luna et al :: Justia Dockets & Filings
Justia Dockets & Filings Ninth Circuit California California Central District Court Securities and Exchange Commission v. Marcus A. Luna et al Filing 48
Securities and Exchange Commission v. Marcus A. Luna et al
FINAL JUDGMENT AS TO DEFENDANT MARCUS A. LUNA by Judge Beverly Reid O'Connell. IT IS ORDERED that the SEC's Motion for Entry of Final Judgment by Default Against Defendant Marcus A. Luna is hereby GRANTED. FURTHER ORDERED, ADJUDGED, AND DEC REED that Defendant is permanently restrained and enjoined. FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $13,331,883, representing profits gained as a result of the conduct alleged in the Complaint, togethe r with prejudgment interest thereon in the amount of $402,476, for a total of $13,734,359. That amount includes Defendant's joint and several liability with defendants Norrell L. Walker, Paul L. Gomez, and Dustin S. Smith for any amounts that they are ordered to pay as disgorgement and prejudgment interest in this action. (jp)
1 2 3 4 5 6 7 8 DAVID J. VAN HAVERMAAT, Cal. Bar No. 175761 Email: vanhavermaatd@sec.gov LUCEE S. KIRKA, Cal. Bar No. 121685 Email: kirkal@sec.gov Attorneys for Plaintiff Securities and Exchange Commission Michele Wein Layne, Regional Director John W. Berry, Associate Regional Director Amy J. Longo, Regional Trial Counsel 444 S. Flower Street, Suite 900 Los Angeles, California 90071 Telephone: (323) 965-3998 Facsimile: (213) 443-1904 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 WESTERN DIVISION 11 12 13 SECURITIES AND EXCHANGE COMMISSION, Case No.: CV-16-07333 BRO (SKx) Plaintiff, FINAL JUDGMENT AS TO DEFENDANT MARCUS A. LUNA 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 vs. MARCUS A. LUNA, NORRELL L. WALKER, PAUL L. GOMEZ, and DUSTIN S. SMITH, Defendants. 1 Plaintiff Securities and Exchange Commission (“SEC” or “Commission”) filed 2 a Motion for Entry of Final Judgment by Default Against Defendant Marcus A. Luna 3 (“Defendant” or “Luna”) pursuant to Rule 55 of the Federal Rules of Civil Procedure. 4 The Court, having considered the SEC’s motion, the memorandum of points and 5 authorities filed in support of the motion, the declarations and all other documents 6 filed in support of the motion, and all other evidence and argument presented 7 regarding the motion, finds that: 8 I. 9 IT IS ORDERED that the SEC’s Motion for Entry of Final Judgment by 10 Default Against Defendant Marcus A. Luna is hereby GRANTED. II. 11 12 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 13 permanently restrained and enjoined from violating, directly or indirectly, Section 14 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 15 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using 16 any means or instrumentality of interstate commerce, or of the mails, or of any 17 facility of any national securities exchange, in connection with the purchase or sale of 18 any security: 19 (a) to employ any device, scheme, or artifice to defraud; 20 (b) to make any untrue statement of a material fact or to omit to state a 21 material fact necessary in order to make the statements made, in the light 22 of the circumstances under which they were made, not misleading; or 23 24 (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. 25 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 26 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 27 binds the following who receive actual notice of this Final Judgment by personal 28 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 1 1 attorneys; and (b) other persons in active concert or participation with Defendant or 2 with anyone described in (a). III. 3 4 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 5 Defendant is permanently restrained and enjoined from violating Section 17(a) of the 6 Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale 7 of any security by the use of any means or instruments of transportation or 8 communication in interstate commerce or by use of the mails, directly or indirectly: 9 (a) to employ any device, scheme, or artifice to defraud; 10 (b) to obtain money or property by means of any untrue statement of a 11 material fact or any omission of a material fact necessary in order to 12 make the statements made, in light of the circumstances under which 13 they were made, not misleading; or 14 (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. 15 16 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 17 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 18 binds the following who receive actual notice of this Final Judgment by personal 19 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 20 attorneys; and (b) other persons in active concert or participation with Defendant or 21 with anyone described in (a). IV. 22 23 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 24 Defendant is permanently restrained and enjoined from violating Section 5 of the 25 Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any 26 applicable exemption: 27 28 (a) Unless a registration statement is in effect as to a security, making use of any means or instruments of transportation or communication in 2 1 interstate commerce or of the mails to sell such security through the use 2 or medium of any prospectus or otherwise; 3 (b) Unless a registration statement is in effect as to a security, carrying or 4 causing to be carried through the mails or in interstate commerce, by any 5 means or instruments of transportation, any such security for the purpose 6 of sale or for delivery after sale; or 7 (c) Making use of any means or instruments of transportation or 8 communication in interstate commerce or of the mails to offer to sell or 9 offer to buy through the use or medium of any prospectus or otherwise 10 any security, unless a registration statement has been filed with the 11 Commission as to such security, or while the registration statement is the 12 subject of a refusal order or stop order or (prior to the effective date of 13 the registration statement) any public proceeding or examination under 14 Section 8 of the Securities Act [15 U.S.C. § 77h]. 15 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 16 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 17 binds the following who receive actual notice of this Final Judgment by personal 18 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 19 attorneys; and (b) other persons in active concert or participation with Defendant or 20 with anyone described in (a). V. 21 22 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 23 is liable for disgorgement of $13,331,883, representing profits gained as a result of 24 the conduct alleged in the Complaint, together with prejudgment interest thereon in 25 the amount of $402,476, for a total of $13,734,359. That amount includes 26 Defendant’s joint and several liability with defendants Norrell L. Walker, Paul L. 27 Gomez, and Dustin S. Smith for any amounts that they are ordered to pay as 28 disgorgement and prejudgment interest in this action. Defendant shall satisfy this 3 1 obligation by paying $13,734,359 to the Securities and Exchange Commission within 2 14 days after entry of this Final Judgment. Defendant’s disgorgement and 3 prejudgment interest obligation shall be credited by any amounts that Defendant is 4 ordered to pay as restitution in U.S. v. Luna, Case No. CR-16-0012-AG-1, pending in 5 the Central District of California. 6 Defendant may transmit payment electronically to the Commission, which will 7 provide detailed ACH transfer/Fedwire instructions upon request. Payment may also 8 be made directly from a bank account via Pay.gov through the SEC website at 9 http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified 10 check, bank cashier’s check, or United States postal money order payable to the 11 Securities and Exchange Commission, which shall be delivered or mailed to 12 Enterprise Services Center 13 Accounts Receivable Branch 14 6500 South MacArthur Boulevard 15 Oklahoma City, OK 73169 16 and shall be accompanied by a letter identifying the case title, civil action number, 17 and name of this Court; Marcus Luna as a defendant in this action; and specifying 18 that payment is made pursuant to this Final Judgment. 19 Defendant shall simultaneously transmit photocopies of evidence of payment 20 and case identifying information to the Commission’s counsel in this action. By 21 making this payment, Defendant relinquishes all legal and equitable right, title, and 22 interest in such funds and no part of the funds shall be returned to Defendant. The 23 Commission shall send the funds paid pursuant to this Final Judgment to the United 24 States Treasury. The Commission may enforce the Court’s judgment for 25 disgorgement and prejudgment interest by moving for civil contempt (and/or through 26 other collection procedures authorized by law) at any time after 14 days following 27 28 4 1 entry of this Final Judgment. Defendant shall pay post judgment interest on any 2 delinquent amounts pursuant to 28 U.S.C. § 1961. VI. 3 4 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the SEC 5 has determined to forgo seeking a civil penalty against Defendant, and the claim for a 6 civil penalty against Defendant is hereby DISMISSED. VII. 7 8 9 10 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. 11 VIII. 12 There being no just reason for delay, pursuant to Rule 54(b) of the Federal 13 Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith 14 and without further notice. 15 16 IT IS SO ORDERED. DATED: October 5, 2017 17 18 By: 19 Honorable Beverly R. O’Connell United States District Court Judge 20 21 22 23 24 25 26 27 28 5