2011-10-13 sec-litreleases judgment 429 KB 17,013 chars

SEC v. AARON HUM E, No. 1:11-cv-20413, Southern District of Florida (Oct. 13, 2011) — Judgment

raw: FINAL JUDGM ENT AS TO DEFENDANT AARON HUM E

FINAL JUDGM ENT AS TO DEFENDANT AARON HUM E, No. 1:11-cv-20413 (Oct. 13, 2011)

Caption: SEC v. AARON HUM E

Exhibit of Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume

summary

Aaron Hume consented to a final judgment without admitting or denying allegations, agreeing to a permanent injunction against promoting or trading non-qualified stocks and violating Sections 10(b) and 17(a) of the securities laws, while disgorging $50,000 in ill-gotten gains, with no civil penalty imposed due to his financial disclosures but subject to reinstatement if those disclosures were later found fraudulent.

paragraph

Aaron Hume was permanently enjoined from engaging in broker-dealer activities involving non-qualified stocks—those not listed on a national exchange with a $50 million market cap for 90 consecutive days—or promoting any issuer of such stocks. He was found liable for violating Sections 10(b) and 17(a) of the Securities Exchange and Securities Acts through fraudulent schemes involving material misstatements and omissions, and ordered to disgorge $50,000 in profits gained from the misconduct. The SEC waived a civil penalty based on Hume’s sworn financial disclosures, but reserved the right to seek the maximum penalty if those disclosures were later determined to be fraudulent, misleading, or incomplete.

narrative

Aaron Hume consented to a final judgment in a U.S. Securities and Exchange Commission enforcement action without admitting or denying the allegations, except as to jurisdiction, and waived all rights to appeal, contest findings, or seek attorney’s fees. He was permanently enjoined from directly or indirectly promoting, advertising, or trading any stock that is not a 'Qualified Stock'—defined as one listed on a national exchange with a $50 million market capitalization maintained for 90 consecutive days—and from violating Sections 10(b) and 17(a) of the federal securities laws through deceptive practices, including material misstatements and omissions. Hume was ordered to disgorge $50,000 in ill-gotten gains, payable to the SEC within 14 days via certified check or money order, with strict reporting requirements to the Commission and its counsel. The SEC declined to impose a civil penalty based on Hume’s sworn Statement of Financial Condition, but explicitly reserved the right to seek the maximum penalty if that financial information was later found to be fraudulent, misleading, or incomplete. Hume also agreed to ongoing court jurisdiction for enforcement purposes, withdrew prior contradictory filings, and acknowledged that any future violation of the injunction could trigger immediate sanctions. His legal representation was provided by Taylor Law Offices, P.A., and the judgment was entered on October 13, 2011, in the U.S. District Court for the Southern District of Florida. The case was part of a broader enforcement action against Wall Street Capital Funding LLC, Philip Cardwell, and Roy Campbell, though this judgment applied solely to Hume.

Enriched metadata

Scheme: unregistered-securities (100%)
Court: Southern District of Florida
Case No.: 1:11-cv-20413
Outcome: settled
Disgorgement: $50,000

Classified unregistered-securities(confidence 100%). EDGAR detection: forms Form D/S-1· recall 41% / precision 30%. detection rule →

Extracted insights

Dollar amounts 2

$50K $50,000 $10K–$100K
$50K $50,000 $10K–$100K

Entities 2

agency Securities and Exchange Commission
organization Securities and Exchange Commission

Triples 8

Securities and Exchange Commission filed a Complaint against Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume
Aaron Hume consented to the Court's jurisdiction over himself and the subject matter of this action
Aaron Hume waived findings of fact and conclusions of law in this legal proceeding
Aaron Hume waived any right to appeal from this Final Judgment
Aaron Hume is permanently restrained and enjoined from engaging in activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing purchase or sale of any stock unless it is a Qualified Stock
Aaron Hume is permanently restrained and enjoined from promoting, advertising, or marketing any issuer of any stock unless it is a Qualified Stock
Aaron Hume is permanently restrained and enjoined from violating Section 10(b) of the Exchange Act and Rule 10b-5 by using means of interstate commerce to defraud, make untrue statements, or engage in fraudulent practices
Aaron Hume is permanently restrained and enjoined from violating Section 17(a) of the Securities Act by using interstate commerce or mails in the offer or sale of securities to employ devices to defraud

PDF

FINAL JUDGM ENT AS TO DEFENDANT AARON HUM E · Source

Text layers

Extracted body text (17,013c)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO. 11-20413-CIV-GM HAM /GOODM AN
SECURITIES AND EXCHANGE COM M ISSION,
Plaintiff,
VS .
W ALL STREET CAPITAL FUNDING LLC,
PHILIP CARDW ELL, ROY CAM PBELL, and
AARON HUM E,
Defendants.
FINAL JUDGM ENT AS TO DEFENDANT AARON HUM E
The Securities and Exchange Comm ission having filed a Complaint, and Defendant
Aaron Hume having entered a general appearance; consented to the Court's jurisdiction over
himself 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); waived Gndings
of fact and conclusions of law; and waived any right to appeal from this Final Judgment:
1.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that, pursuant to Section
20(g) of the Securities Act of 1933 (iisecurities Act'') (15 U.S.C. j 77t(g)) and Sections 21(d)(5)
and 2 1(d)(6) of the Securities Exchange Act of l 934 (dsExchange Act'') (15 U.S.C. # 78u(d)(5)
and (6)), Hume and his agents, servants, employees, attorneys, and all persons in active concert
or participation with them who receive actual notice of this Final Judgment by personal service
or otherwise are permanently restrained and enjoined from:

(A) directly or indirectly 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 stock
unless it is (i) listed on a national securities exchange and (ii) has had a market capitalization of
at least $50,000,0000 for 90 consecutive days (a Ssoualified Stock''); and
(B) from directly or indirectly promoting, advertising, or marketing any issuer of any
stock unless it is a Qualified Stock; causing the pr
omotion, advertising, or marketing of any
issuer of any stock unless it is a Qualified Stock; or deriving compensation from the promotion,
advertising, or marketing of any issuer of any stock
unless it is a Qualified Stock.
II.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to
Section 2 1(d)(1) of the Exchange Act gl 5 U.S.C. j 78u(d)(1)J, Hume and his agents, servants,
employees, attorneys, and all persons in active concert or participation with them who receive
actual notice of this Final Judgment by personal service or otherwise are permanently restrained
and enjoined from violating, directly or indirectly, Section 10(b) of the Exchange Act (15 U.S.C.
j 78j(b)q and Rule 10b-5 promulgated thereunder (17 C.F.R. j 240.10b-51, by using any means
or instrumentality of interstate comm erce, or of the mails, or of any facility of any national
securities exchange, in connection with the purchase or sale of any security or any security-based
swap agreement:
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 Iight of the circum stances
under which they were made, not misleading; or
2

to engage in any act, practice, or course of business which operates or would
operate as a fraud or deceit upon any person.
111.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, p
ursuant to
Section 20(b) of the Securities Act (15 U.S.C. j 77t(b)), Hume and his agents, servants,
employees, attorneys, and all persons in active concert or participation with them who receive
actual notice of this Final Judgment by personal service or othenvise are permanently restrained
and enjoined from violating Section l7(a) of the Securities Act (15 U.S.C. j 77q(a)), by using
any means or instrumentality of transportation or communication in interstate commerce, or the
mails, in the offer or sale of any security or any security-based swap agreement, directly or
indirectly:
(a) to employ any device, scheme, or artifice to defraud;
(b) to obtain money or property by means of any untr
ue statement of a material fact
or any omission to state a material fact necessary in order to make the statements made,
in light of the circumstances under which they were made, not m isleading; 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.
IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Hu
me is liable for
disgorgement of $50,000, representing profits gained as a result of the conduct alleged in the
Complaint. Hume shall satisfy this obligation by paying $50,000 within 14 days after entry of
this Final Judgment by certified check, bank cashier's check, or United States postal money
3

order payable to the Securities and Exchange Com mission. The payment shall be delivered or
mailed to the Securities and Exchange Commission, Office of Financial M anagement, Accounts
Receivable, 100 F Street NE Stop 6042, W ashington DC 20549, and shall be accompanied by a
letler identifying Hume as a defendant in this action; setting forth the title and civil action
number of this action and the name of this Court; and specifying that payment is made pursuant
to this Final Judgment. Hume shall sim ultaneously transm it photocopies of such payment and
Ietter to the Commission's counsel in this action, Todd D. Brody, and to Robert J. Keyes,
Associate Regional Director, U.S. Securities and Exchange Comm ission, New York Regional
Office, 3 W orld Financial Center, Room 400, New York, New York 1028 1-1022. Hume shall
also pay post-judgment interest on any delinquent amounts pursuant to 28 USC j l 961 .
Based on Hume's sworn representations in his Statem ent of Financial Condition dated
August 24 and other documents and information submitted to the Comm ission, however, the
Court is not ordering Hume to pay a civil penalty. The determination not to impose a civil
penalty is contingent upon the accuracy and completeness of Hume's Statement of Financial
Condition and other documents and information subm itted to the Comm ission. lf at any time
following the entry of this Final Judgment the Com mission obtains information indicating that
Hum e's representations to the Commission concerning his assets, income, liabilities, or net
worth were fraudulent, misleading, inaccurate, or incomplete in any material respect as of the
time such representations were made, the Commission may, at its sole discretion and without
prior notice to Hume, petition the Court for an order requiring Hume to pay the maximum civil
penalty allowable under the law. In connection with any such petition, the only issue shall be
whether the tsnancial information provided by Hum e was fraudulent, misleading, inaccurate, or
incomplete in any material respect as of the tim e such representations were made. In its petition,
4

the Commission may move this Court to consider all available remedies, including, but not
limited to, ordering Hume to pay funds or assets, directing the forfeiture of any assets, or
sanctions for contempt of this Final Judgment. The Comm ission may also request additional
discovery. Hume may not, by way of defense to such petition: (1) challenge the validity of the
Consent or this Final Judgment; (2) contest the allegations in the Complaint filed by the
Commission; (3) assert that payment of disgorgement, pre-judgment and post-judgment interest
or a civil penalty should not be ordered; (4) contes
t the amount of disgorgement and pre-
judgment and post-judgment interest; (5) contest the
imposition of the maximum civil penalty
allowable under the law; or (6) assert any defense to liability or remedy, including, but not
lim ited to, any statute of limitations defense.
v.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the attached
Consent of Defendant Aaron Hume is incorporated herein with the same force and effect as if
fully set forth herein, and that Hume shall comply with all of the undertakings and agreements
set forth therein.
VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that th
is Court shall
retain jurisdiction of this matter for thepurposes of enforcing the terms of this Final Judgm t.
SO O .
UNITE STATES DISTRICT JUDGE
tat ezîuollD
ated: /
5

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO. 11-20413-CIV-GM HAM /GOODM AN
SECURITIES AND EXCHANGE COM M ISSION,
Plaintiff,
W ALL STREET CAPITAL FUNDING LLC,
PHILIP CARDW ELL, ROY CAM PBELL, and
AARON HUM E,
Defendants.
/
CONSENT OF DEFENDANT AARON HUM E
Defendant Aaron Hume admits the Court's jurisdiction over himself and over the
subject matter of this action.
Without admitting or denying the allegationsof the Complaint (except as to
personal and subject matter jurisdiction, which Hume admits), Hume hereby consents to the
entry of the Final Judgment as to Defendant Aaron Hume in the form attached hereto (the ddFinal
Judgment'') and incomorated by reference herein, which, among other things:
(a) Permanently restrains and enjoins Hume: from directly or indirectly 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 stock unless it is
(i) listed on a national securities exchange and (ii
) has had a market
capitalization of at least $50,000,0000 for 90 consecutive days (a ddoualified
Stock''); and from directly or indirectly promoting, advertising, or marketing
6

any issuer of any stock unless it is a Qualified Stock; causing the promotion,
advertising, or marketing of any issuer of any stock unless it is a Qualified
Stock; or deriving compensation from the promotion, advertising, or
marketing of any issuer of any stock unless it is a
Qualified Stock;
(b) permanently restrains and enjoins Hume from violation of Section 1 7(a) of the
Securities Act of 1933 (stsecurities Act'') g15 U.S.C. j 77q(a)1, Section 10(b)
of the Securities Exchange Act of 1934 (ssExchange Act'') (15 U.S.C. j 78j(b)1
and Rule l0b-5 thereunder g17 C.F.R. j 240.10b-51; and
(c) orders Hume to pay disgorgement of $50,000.
Hume acknowledges that the Court is not imposing a civil penalty based on his
sworn representations in his Statement of Financial Condition dated August 24, 201 1 and other
documents and information submitted to the Commission. Hume further consents that if at any
time following the entry of the Final Judgment the Comm ission obtains information indicating
that Hume's representations to the Commission concerning his assets, income, liabilities, or net
worth were fraudulent, misleading, inaccurate, or incomplete in any material respect as of the
time such representations were made, the Comm ission may, at its sole discretion and without
prior notice to Hume, petition the Court for an order requiring Hume to pay the m axim um civil
penalty allowable under the law. ln connection with any such petition, the only issue shall be
whether the financial information provided by Hume was fraudulent, misleading, inaccurate, or
incomplete in any material respect as of the tim e such representations were made. In any such
petition, the Commission may move the Court to consider all available remedies, including but
not limited to ordering Hume to pay funds or assets, directing the forfeiture of any assets, or
sanctions for contempt of the Court's Final Judgment. The Comm ission may also request
7

additional discovery. Hume may not, by way of defense to such petition: (l) challenge the
validity of this Consent or the Final Judgment; (2) contest the allegations in the complaint; (3)
assert that payment of disgorgement, pre-judgment or post-judgment interest, or a civil penalty
should not be ordered; (4) contest the amount of disgorgement or pre-judgment or post-judgment
interest; (5) contest the imposition of the maximum civil penalty allowable under the law; or (6)
assert any defense to liability or remedy, including but not limited to any statute of limitations
defense.
Hume waives the entry of findings of fact and conclusions of law pursuant to Rule
52 of the Federal Rules of Civil Procedure.
Hume waives the right, if any, to a jury trial and to appeal from the entry of the
Final Judgment.
6. Hume enters into this Consent voluntarily and represents that no threats, offers,
prom ises, or inducements of any kind have been made by the Comm ission or any member,
officer, employee, agent, or representative of the Commission to induce Hume to enter into this
Consent.
Hume agrees that this Consent shall be incorporated into the Final Judgment with
the same force and effect as if fully set forth therein.
Hume 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
hereby waives any objection based thereon.
9. Hume waives service of the Final Judgment and agrees that entry of the Final
Judgment by the Court and Gling with the Clerk of the Court will constitute notice to Hume of its
tenns and conditions. Hume further agrees to provide
8
counsel for the Com mission, within

fourteen (14) days after the Final Judgment is filed with the Clerk of the Court, with an affidavit
or declaration stating that Hume has received and read a copy of the Final Judgment.
10. Consistent with 17 C.F.R. 202.5(9, this Consent resolves only the claims asserted
against Hume in this civil proceeding. Hume acknowledges that no promise or representation
has been made by the Commission or any mem ber, officer, employee, agent, or representative of
the Commission with regard to any crim inal liability that may have arisen or may arise from the
facts underlying this action or immunity from any such crim inal liability. Hume waives any
claim of Double Jeopardy based upon the settlement of this proceeding, including the imposition
of any remedy or civil penalty herein. Hume further acknowledges that the Court's entry of a
permanent injunction may have collateral consequences under federal or state law and the rules
and regulations of self-regulatol.y organizations, licensing boards, and other regulatory
organizations. Such collateral consequences include, but are n0t limited to, a statutory
disqualification with respect to membership or participation in, or association with a mem ber of,
a self-regulatory organization. This statutory disqualification has consequences that are separate
from any sanction imposed in an adm inistrative proceeding. ln addition, in any disciplinary
proceeding before the Commission based on the entry of the injunction in this action, Hume
understands that he shall not be permitted to contest the factual allegations of the Complaint in
this action.
1 1 . Hume understands and agrees to comply with the Commission's policy (dnot to
permit a defendant or respondent to consent to a judgment or order that imposes a sanction while
denying the allegations in the complaint or order for proceedings.'' 17 C.F.R. j 202.5. ln
compliance with this policy, Hume agrees: (i) not to take any action or to make or permit to be
made any public statement denying, directly or indirectly, any allegation in the Complaint or
9

creating the impression that the Complaint is without factual basis; and (ii) that upon the sling of
this Consent, Hume will be deemed to have withdrawn any papers filed in this action to the
extent that they deny any allegation in the Complaint. lf Hume breaches this agreement, the
Commission may petition the Court to vacate the Final Judgment and restore this action to its
active docket. Nothing in this paragraph affects Hume's: (i) testimonial obligations; or (ii) right
to take legal or factual positions in litigation or other legal proceedings in which the Comm ission
is not a party.
Hume hereby waives any rights under the Equal Access to Justice Act, the Small
Business Regulatory Enforcement Fairness Act of 1996, or any other provision of law to seek
from the United States, or any agency, or any official of the United States acting in his or her
official capacity, directly or indirectly, reimbursement of attorney's fees or other fees, expenses,
or costs expended by Hume to defend against this action. For these purposes, Hume agrees that
he is not the prevailing party in this action since the parties have reached a good faith settlement.
l 3. Hume agrees that the Commission may present the Final Judgment to the Court
for signature and entry without further notice.
10

14. Hume apees that this Court shall retnin jurisdiction over tllis matter for the
purpose of enforcing the terms of the FY Judgment.
#-/'e-//D ated:
aron Hume
0n . / , 2011, J4rön MDm e . a person known to me,
personally ap ed before me and acu owledged executing
the foregoing Consent.
Approved as to form :
t
pe' .
q .A '
ThomnA tu àylor III
The Taylor Law OKces, P.C.
4550 Post Oak Place Dr. Ste. 241
H
ouston, TX 77027
Te1: 713-626-5300
Fax: 713-402-6154
taylor@tltaylorlamcom
Attorneyfor Dexezzn/ Aaron Hume
No Public
Omm1SS1On CXP C%. u, j-. o j j ..$ . gau jyty j Gry PuDl . .
iw to i LL-ft7I!-C'' t3LW. 12, % 11G Ccm
11

OCR text (18,170c · tika · 95% conf)

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

CASE NO. 11-20413-CIV-GM HAM /GOODM AN

SECURITIES AND EXCHANGE COM M ISSION,

Plaintiff,

VS .

W ALL STREET CAPITAL FUNDING LLC,

PHILIP CARDW ELL, ROY CAM PBELL, and

AARON HUM E,

Defendants.

FINAL JUDGM ENT AS TO DEFENDANT AARON HUM E

The Securities and Exchange Comm ission having filed a Complaint, and Defendant

Aaron Hume having entered a general appearance; consented to the Court's jurisdiction over

himself 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); waived Gndings

of fact and conclusions of law; and waived any right to appeal from this Final Judgment:

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that, pursuant to Section

20(g) of the Securities Act of 1933 (iisecurities Act'') (15 U.S.C. j 77t(g)) and Sections 21(d)(5)

and 2 1(d)(6) of the Securities Exchange Act of l 934 (dsExchange Act'') (15 U.S.C. # 78u(d)(5)

and (6)), Hume and his agents, servants, employees, attorneys, and all persons in active concert

or participation with them who receive actual notice of this Final Judgment by personal service

or otherwise are permanently restrained and enjoined from:

Case 1:11-cv-20413-DLG Document 49 Entered on FLSD Docket 10/13/2011 Page 1 of 11

(A) directly or indirectly 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 stock

unless it is (i) listed on a national securities exchange and (ii) has had a market capitalization of

at least $50,000,0000 for 90 consecutive days (a Ssoualified Stock''); and

(B) from directly or indirectly promoting, advertising, or marketing any issuer of any

stock unless it is a Qualified Stock; causing the promotion, advertising, or marketing of any

issuer of any stock unless it is a Qualified Stock; or deriving compensation from the promotion,

advertising, or marketing of any issuer of any stock unless it is a Qualified Stock.

II.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to

Section 2 1(d)(1) of the Exchange Act gl 5 U.S.C. j 78u(d)(1)J, Hume and his agents, servants,

employees, attorneys, and all persons in active concert or participation with them who receive

actual notice of this Final Judgment by personal service or otherwise are permanently restrained

and enjoined from violating, directly or indirectly, Section 10(b) of the Exchange Act (15 U.S.C.

j 78j(b)q and Rule 10b-5 promulgated thereunder (17 C.F.R. j 240.10b-51, by using any means

or instrumentality of interstate comm erce, or of the mails, or of any facility of any national

securities exchange, in connection with the purchase or sale of any security or any security-based

swap agreement:

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 Iight of the circum stances

under which they were made, not misleading; or

Case 1:11-cv-20413-DLG Document 49 Entered on FLSD Docket 10/13/2011 Page 2 of 11

to engage in any act, practice, or course of business which operates or would

operate as a fraud or deceit upon any person.

111.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to

Section 20(b) of the Securities Act (15 U.S.C. j 77t(b)), Hume and his agents, servants,

employees, attorneys, and all persons in active concert or participation with them who receive

actual notice of this Final Judgment by personal service or othenvise are permanently restrained

and enjoined from violating Section l7(a) of the Securities Act (15 U.S.C. j 77q(a)), by using

any means or instrumentality of transportation or communication in interstate commerce, or the

mails, in the offer or sale of any security or any security-based swap agreement, 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 to state a material fact necessary in order to make the statements made,

in light of the circumstances under which they were made, not m isleading; or

would operate as a fraud or deceit upon the purchaser.

IV.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Hume is liable for

disgorgement of $50,000, representing profits gained as a result of the conduct alleged in the

Complaint. Hume shall satisfy this obligation by paying $50,000 within 14 days after entry of

this Final Judgment by certified check, bank cashier's check, or United States postal money

Case 1:11-cv-20413-DLG Document 49 Entered on FLSD Docket 10/13/2011 Page 3 of 11

order payable to the Securities and Exchange Com mission. The payment shall be delivered or

mailed to the Securities and Exchange Commission, Office of Financial M anagement, Accounts

Receivable, 100 F Street NE Stop 6042, W ashington DC 20549, and shall be accompanied by a

letler identifying Hume as a defendant in this action; setting forth the title and civil action

number of this action and the name of this Court; and specifying that payment is made pursuant

to this Final Judgment. Hume shall sim ultaneously transm it photocopies of such payment and

Ietter to the Commission's counsel in this action, Todd D. Brody, and to Robert J. Keyes,

Associate Regional Director, U.S. Securities and Exchange Comm ission, New York Regional

Office, 3 W orld Financial Center, Room 400, New York, New York 1028 1-1022. Hume shall

also pay post-judgment interest on any delinquent amounts pursuant to 28 USC j l 961 .

Based on Hume's sworn representations in his Statem ent of Financial Condition dated

August 24 and other documents and information submitted to the Comm ission, however, the

Court is not ordering Hume to pay a civil penalty. The determination not to impose a civil

penalty is contingent upon the accuracy and completeness of Hume's Statement of Financial

Condition and other documents and information subm itted to the Comm ission. lf at any time

following the entry of this Final Judgment the Com mission obtains information indicating that

Hum e's representations to the Commission concerning his assets, income, liabilities, or net

worth were fraudulent, misleading, inaccurate, or incomplete in any material respect as of the

time such representations were made, the Commission may, at its sole discretion and without

prior notice to Hume, petition the Court for an order requiring Hume to pay the maximum civil

penalty allowable under the law. In connection with any such petition, the only issue shall be

whether the tsnancial information provided by Hum e was fraudulent, misleading, inaccurate, or

incomplete in any material respect as of the tim e such representations were made. In its petition,

Case 1:11-cv-20413-DLG Document 49 Entered on FLSD Docket 10/13/2011 Page 4 of 11

the Commission may move this Court to consider all available remedies, including, but not

limited to, ordering Hume to pay funds or assets, directing the forfeiture of any assets, or

sanctions for contempt of this Final Judgment. The Comm ission may also request additional

discovery. Hume may not, by way of defense to such petition: (1) challenge the validity of the

Consent or this Final Judgment; (2) contest the allegations in the Complaint filed by the

Commission; (3) assert that payment of disgorgement, pre-judgment and post-judgment interest

or a civil penalty should not be ordered; (4) contest the amount of disgorgement and pre-

judgment and post-judgment interest; (5) contest the imposition of the maximum civil penalty

allowable under the law; or (6) assert any defense to liability or remedy, including, but not

lim ited to, any statute of limitations defense.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the attached

Consent of Defendant Aaron Hume is incorporated herein with the same force and effect as if

fully set forth herein, and that Hume shall comply with all of the undertakings and agreements

set forth therein.

VI.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall

retain jurisdiction of this matter for thepurposes of enforcing the terms of this Final Judgm t.

SO O .

UNITE STATES DISTRICT JUDGE

tat ezîuollDated: /

Case 1:11-cv-20413-DLG Document 49 Entered on FLSD Docket 10/13/2011 Page 5 of 11

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

CASE NO. 11-20413-CIV-GM HAM /GOODM AN

SECURITIES AND EXCHANGE COM M ISSION,

Plaintiff,

W ALL STREET CAPITAL FUNDING LLC,

PHILIP CARDW ELL, ROY CAM PBELL, and

AARON HUM E,

Defendants.
/

CONSENT OF DEFENDANT AARON HUM E

Defendant Aaron Hume admits the Court's jurisdiction over himself and over the

subject matter of this action.

Without admitting or denying the allegationsof the Complaint (except as to

personal and subject matter jurisdiction, which Hume admits), Hume hereby consents to the

entry of the Final Judgment as to Defendant Aaron Hume in the form attached hereto (the ddFinal

Judgment'') and incomorated by reference herein, which, among other things:

(a) Permanently restrains and enjoins Hume: from directly or indirectly 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 stock unless it is

(i) listed on a national securities exchange and (ii) has had a market

capitalization of at least $50,000,0000 for 90 consecutive days (a ddoualified

Stock''); and from directly or indirectly promoting, advertising, or marketing

Case 1:11-cv-20413-DLG Document 49 Entered on FLSD Docket 10/13/2011 Page 6 of 11

any issuer of any stock unless it is a Qualified Stock; causing the promotion,

advertising, or marketing of any issuer of any stock unless it is a Qualified

Stock; or deriving compensation from the promotion, advertising, or

marketing of any issuer of any stock unless it is a Qualified Stock;

(b) permanently restrains and enjoins Hume from violation of Section 1 7(a) of the

Securities Act of 1933 (stsecurities Act'') g15 U.S.C. j 77q(a)1, Section 10(b)

of the Securities Exchange Act of 1934 (ssExchange Act'') (15 U.S.C. j 78j(b)1

and Rule l0b-5 thereunder g17 C.F.R. j 240.10b-51; and

Hume acknowledges that the Court is not imposing a civil penalty based on his

sworn representations in his Statement of Financial Condition dated August 24, 201 1 and other

documents and information submitted to the Commission. Hume further consents that if at any

time following the entry of the Final Judgment the Comm ission obtains information indicating

that Hume's representations to the Commission concerning his assets, income, liabilities, or net

worth were fraudulent, misleading, inaccurate, or incomplete in any material respect as of the

time such representations were made, the Comm ission may, at its sole discretion and without

prior notice to Hume, petition the Court for an order requiring Hume to pay the m axim um civil

penalty allowable under the law. ln connection with any such petition, the only issue shall be

whether the financial information provided by Hume was fraudulent, misleading, inaccurate, or

incomplete in any material respect as of the tim e such representations were made. In any such

petition, the Commission may move the Court to consider all available remedies, including but

not limited to ordering Hume to pay funds or assets, directing the forfeiture of any assets, or

sanctions for contempt of the Court's Final Judgment. The Comm ission may also request

Case 1:11-cv-20413-DLG Document 49 Entered on FLSD Docket 10/13/2011 Page 7 of 11

additional discovery. Hume may not, by way of defense to such petition: (l) challenge the

validity of this Consent or the Final Judgment; (2) contest the allegations in the complaint; (3)

assert that payment of disgorgement, pre-judgment or post-judgment interest, or a civil penalty

should not be ordered; (4) contest the amount of disgorgement or pre-judgment or post-judgment

interest; (5) contest the imposition of the maximum civil penalty allowable under the law; or (6)

assert any defense to liability or remedy, including but not limited to any statute of limitations

defense.

Hume waives the entry of findings of fact and conclusions of law pursuant to Rule

52 of the Federal Rules of Civil Procedure.

Hume waives the right, if any, to a jury trial and to appeal from the entry of the

Final Judgment.

6. Hume enters into this Consent voluntarily and represents that no threats, offers,

prom ises, or inducements of any kind have been made by the Comm ission or any member,

officer, employee, agent, or representative of the Commission to induce Hume to enter into this

Consent.

Hume agrees that this Consent shall be incorporated into the Final Judgment with

the same force and effect as if fully set forth therein.

Hume 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

hereby waives any objection based thereon.

9. Hume waives service of the Final Judgment and agrees that entry of the Final

Judgment by the Court and Gling with the Clerk of the Court will constitute notice to Hume of its

tenns and conditions. Hume further agrees to provide

counsel for the Com mission, within

Case 1:11-cv-20413-DLG Document 49 Entered on FLSD Docket 10/13/2011 Page 8 of 11

fourteen (14) days after the Final Judgment is filed with the Clerk of the Court, with an affidavit

or declaration stating that Hume has received and read a copy of the Final Judgment.

10. Consistent with 17 C.F.R. 202.5(9, this Consent resolves only the claims asserted

against Hume in this civil proceeding. Hume acknowledges that no promise or representation

has been made by the Commission or any mem ber, officer, employee, agent, or representative of

the Commission with regard to any crim inal liability that may have arisen or may arise from the

facts underlying this action or immunity from any such crim inal liability. Hume waives any

claim of Double Jeopardy based upon the settlement of this proceeding, including the imposition

of any remedy or civil penalty herein. Hume further acknowledges that the Court's entry of a

permanent injunction may have collateral consequences under federal or state law and the rules

and regulations of self-regulatol.y organizations, licensing boards, and other regulatory

organizations. Such collateral consequences include, but are n0t limited to, a statutory

disqualification with respect to membership or participation in, or association with a mem ber of,

a self-regulatory organization. This statutory disqualification has consequences that are separate

from any sanction imposed in an adm inistrative proceeding. ln addition, in any disciplinary

proceeding before the Commission based on the entry of the injunction in this action, Hume

understands that he shall not be permitted to contest the factual allegations of the Complaint in

this action.

1 1 . Hume understands and agrees to comply with the Commission's policy (dnot to

permit a defendant or respondent to consent to a judgment or order that imposes a sanction while

denying the allegations in the complaint or order for proceedings.'' 17 C.F.R. j 202.5. ln

compliance with this policy, Hume agrees: (i) not to take any action or to make or permit to be

made any public statement denying, directly or indirectly, any allegation in the Complaint or

Case 1:11-cv-20413-DLG Document 49 Entered on FLSD Docket 10/13/2011 Page 9 of 11

creating the impression that the Complaint is without factual basis; and (ii) that upon the sling of

this Consent, Hume will be deemed to have withdrawn any papers filed in this action to the

extent that they deny any allegation in the Complaint. lf Hume breaches this agreement, the

Commission may petition the Court to vacate the Final Judgment and restore this action to its

active docket. Nothing in this paragraph affects Hume's: (i) testimonial obligations; or (ii) right

to take legal or factual positions in litigation or other legal proceedings in which the Comm ission

is not a party.

Hume hereby waives any rights under the Equal Access to Justice Act, the Small

Business Regulatory Enforcement Fairness Act of 1996, or any other provision of law to seek

from the United States, or any agency, or any official of the United States acting in his or her

official capacity, directly or indirectly, reimbursement of attorney's fees or other fees, expenses,

or costs expended by Hume to defend against this action. For these purposes, Hume agrees that

he is not the prevailing party in this action since the parties have reached a good faith settlement.

l 3. Hume agrees that the Commission may present the Final Judgment to the Court

for signature and entry without further notice.

Case 1:11-cv-20413-DLG Document 49 Entered on FLSD Docket 10/13/2011 Page 10 of 11

14. Hume apees that this Court shall retnin jurisdiction over tllis matter for the

purpose of enforcing the terms of the FY Judgment.

#-/'e-//Dated:
aron Hume

0n . / , 2011, J4rön MDm e . a person known to me,
personally ap ed before me and acu owledged executing the foregoing Consent.

Approved as to form :

tpe' .

q .A '
ThomnA tu àylor III
The Taylor Law OKces, P.C.

4550 Post Oak Place Dr. Ste. 241
Houston, TX 77027
Te1: 713-626-5300

Fax: 713-402-6154

taylor@tltaylorlamcom

Attorneyfor Dexezzn/ Aaron Hume

No Public

Omm1SS1On CXP C%. u, j-. o j j ..$ . gau jyty j Gry PuDl . .
iw to i LL-ft7I!-C'' t3LW. 12, % 11G Ccm

Case 1:11-cv-20413-DLG Document 49 Entered on FLSD Docket 10/13/2011 Page 11 of 11

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