Source: https://www.scribd.com/document/398901302/Mark-E-Groussman-SEC-Judgement
Timestamp: 2019-02-19 03:07:35
Document Index: 85012633

Matched Legal Cases: ['§ 77', '§ 77', '§ 78', '§ 240', '§ 240', '§ 240', '§ 240', '§ 77', '§\n78', '§ 1961', '§523', '§523', '§ 77', '§ 78', '§\n240', '§ 77', '§ 78', '§ 77', '§ 78', '§ 202', '§ 202', '§523', '§523']

Mark E. Groussman SEC Judgement | Complaint | Judgment (Law)
Mark E. Groussman SEC Judgement
Proposed judgement of a five year ban form investing in penny stocks for Miami micro-cap investor Mark Groussman. Fines and discouragement of $1.38 million for his role in the Barry Honig led pump and dump scheme.
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Case 1:18-cv-08175-ER Document 89 Filed 02/01/19 Page 1 of 13
-- against -- :
BARRY C. HONIG, JOHN STETSON, :
MICHAEL BRAUSER, JOHN R. O’ROURKE III, :
MARK GROUSSMAN, PHILLIP FROST, :
JOHN H. FORD, ALPHA CAPITAL ANSTALT, ATG :
CAPITAL LLC, FROST GAMMA INVESTMENTS :
TRUST, GRQ CONSULTANTS, INC., :
HS CONTRARIAN INVESTMENTS, LLC, :
GRANDER HOLDINGS, INC., MELECHDAVID, :
INC., OPKO HEALTH, INC., :
SOUTHERN BIOTECH, INC., and :
STETSON CAPITAL INVESTMENTS INC., :
FINAL JUDGMENT AS TO DEFENDANT MARK GROUSSMAN
The Securities and Exchange Commission having filed a Complaint and Defendant Mark
Groussman 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
except as otherwise provided herein in paragraph VIII); waived findings of fact and conclusions
of law; and waived any right to appeal from this Final Judgment:
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officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or
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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
(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
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(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].
is permanently restrained and enjoined from violating, directly or indirectly, Section 13(d) of the
Exchange Act [15 U.S.C. § 78m(d)] and Rule 13d-1(a) promulgated thereunder [17 C.F.R.
§ 240.13d-1(a)] by failing to file with the Commission a statement containing the information
required by Schedule 13D (as provided in 17 C.F.R. § 240.13d-101), within 10 days after
acquiring directly or indirectly the beneficial ownership of more than five percent of any equity
security of a class which is specified in Exchange Act Rule 13d-1(i) [17 C.F.R. § 240.13d-1(i)].
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is barred, for five years following the date of entry of this Final Judgment, from participating in
an offering of penny stock, including engaging in activities with a broker, dealer, or issuer for
purposes of issuing, trading, or inducing or attempting to induce the purchase or sale of any
penny stock (which is any equity security that has a price of less than five dollars, except as
provided in Rule 3a51-1 under the Exchange Act [17 C.F.R. § 240.3a51-1]); provided, however,
that such bar shall not prohibit Defendant from holding or selling the securities of, or providing
additional funding to, any issuer whose securities are owned by Defendant as of the date of this
Final Judgment; provided further, however, that, any sale of securities hereafter shall be limited
to the number of shares of such issuer held by Defendant as of the date of this Final Judgment,
and, furthermore, for any additional funding provided by Defendant hereafter to any such issuer,
Defendant shall receive debt securities with no current or future equity conversion feature.
is liable for disgorgement of $1,051,360, representing profits gained as a result of the conduct
alleged in the Complaint, together with prejudgment interest thereon in the amount of
$170,554.78, and a civil penalty in the amount of $160,000 pursuant to Section 20(d)(2) of the
Securities Act [15 U.S.C. § 77t(d)(2)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. §
78u(d)(3)]. Defendant shall satisfy this obligation by paying $1,381,914.78 to the Securities and
Exchange Commission within 14 days after entry of this Final Judgment.
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this Court; Mark Groussman as a defendant in this action; and specifying that payment is made
of the funds shall be returned to Defendant. 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. Defendant shall pay post
judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961.
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exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. §523, the
523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19).
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CONSENT OF DEFENDANT MARK GROUSSMAN
1. Defendant Mark Groussman (“Defendant”) acknowledges having been served
with the complaint in this action, enters a general appearance, and admits the Court’s jurisdiction
over Defendant and over the subject matter of this action.
herein in paragraph 11 and except as to personal and subject matter jurisdiction, which
Defendant admits), Defendant hereby consents to the entry of the final Judgment in the form
attached hereto (the “Final Judgment”) and incorporated by reference herein, which, among other
(a) permanently restrains and enjoins Defendant from violation of Sections
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5(a) and (c) and 17(a) of the Securities Act of 1933 (“Securities Act) [15
U.S.C. §§ 77e(a) and (c) and 77q(a)] and Sections 10(b) and 13(d) of the
Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. §§ 78j(b)
and 78m(d)] and Rules 10b-5 and 13d-1(a) thereunder [17 C.F.R. §§
240.10b-5 and 240.13d-1(a)];
(b) bars Defendant, for five years following the date of entry of the Final
Judgment, from participating in any offering of penny stock pursuant to
Section 20(g) of the Securities Act [15 U.S.C. § 77t(g)] and Section
21(d)(6) of the Exchange Act [15 U.S.C. § 78u(d)(6)] , except as specified
in the Final Judgment;
(c) orders Defendant to pay disgorgement in the amount of $1,051,360, plus
prejudgment interest thereon in the amount of $170,554.78; and
(d) orders Defendant to pay a civil penalty in the amount of $160,000 under
Section 20(d)(2) of the Securities Act [15 U.S.C. § 77t(d)(2)] and Section
21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)].
3. Defendant agrees that he shall not seek or accept, directly or indirectly,
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7. Defendant agrees that this Consent shall be incorporated into the Final Judgment
8. Defendant will not oppose the enforcement of the Final Judgment on the ground,
if any exists, that it fails to comply with Rule 65(d) of the Federal Rules of Civil Procedure, and
9. Defendant waives service of the Final Judgment and agrees that entry of the Final
10. Consistent with 17 C.F.R. § 202.5(f), this Consent resolves only the claims
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11. Defendant understands and agrees to comply with the terms of 17 C.F.R.
§ 202.5(e), which provides in part that it is the Commission's policy “not to permit a defendant or
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for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11
U.S.C. §523, that the allegations in the complaint are true, and further, that any debt for
523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19). If Defendant breaches this
her official capacity, directly or indirectly, reimbursement of attorney’s fees or other fees,
13. Defendant agrees that the Commission may present the Final Judgment to the
Court for signature and entry without further notice.
14. Defendant agrees that this Court shall retain jurisdiction over this matter for the
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