2024-06-03 sec-litreleases judgment 159 KB 7,049 chars

SEC v. ANDREAS BECHTOLSHEIM, No. 5:24-cv-01845-PCP, Northern District of California (June 3, 2024) — Judgment

raw: SEC v. ANDREAS BECHTOLSHEIM

SEC v. ANDREAS BECHTOLSHEIM, No. 5:24-cv-01845-PCP (June 3, 2024)

Caption: SECURITIES AND EXCHANGE COMMISSION v. ANDREAS BECHTOLSHEIM

summary

Andreas Bechtolsheim agreed to a final judgment with the SEC, including a $923,740 penalty and a five-year officer and director bar, to resolve allegations of securities fraud.

paragraph

The SEC obtained a final judgment against Andreas Bechtolsheim for violations of Section 10(b) of the Exchange Act and Rule 10b-5. Bechtolsheim consented to the judgment without admitting or denying the allegations and agreed to pay a $923,740 civil penalty. The court also imposed a five-year prohibition on him serving as an officer or director of any registered issuer.

narrative

The Securities and Exchange Commission secured a final judgment against Andreas Bechtolsheim in the U.S. District Court for the Northern District of California. The action addressed allegations of violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 through fraudulent schemes or material misstatements in connection with securities transactions. Without admitting or denying the allegations, Bechtolsheim consented to the court's jurisdiction and the entry of the judgment. As part of the settlement, he is permanently enjoined from future violations of federal securities laws. Additionally, the court imposed a five-year ban prohibiting him from acting as an officer or director of any registered issuer. Finally, Bechtolsheim is required to pay a civil penalty of $923,740 to the SEC.

Enriched metadata

Scheme: financial-fraud (97%)
Court: Northern District of California
Case No.: 5:24-cv-01845-PCP
Outcome: settled
Civil penalty: $923,740

Classified financial-fraud(confidence 97%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 67% / precision 23%. detection rule →

Extracted insights

Dollar amounts 1

$924K $923,740 $100K–$1M

Entities 3

person andreas bechtolsheim
agency Securities and Exchange Commission
person this final judgment

Triples 8

Andreas Bechtolsheim consented to the Court's jurisdiction
Andreas Bechtolsheim consented to entry of this Final Judgment
Andreas Bechtolsheim waived findings of fact and conclusions of law
Andreas Bechtolsheim waived any right to appeal
Andreas Bechtolsheim is permanently restrained and enjoined from violating Section 10(b) of the Securities Exchange Act of 1934
Andreas Bechtolsheim is prohibited from acting as an officer or director of any issuer
Andreas Bechtolsheim shall pay a civil penalty in the amount of $923,740
Securities and Exchange Commission filed a Complaint

PDF

SEC v. ANDREAS BECHTOLSHEIM · Source

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Extracted body text (7,049c)

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MONIQUE C. WINKLER (Cal. Bar No. 213031)
[email protected]
JASON H. LEE (Cal. Bar No. 253140)
[email protected]
RAHUL KOLHATKAR (Cal. Bar No. 261781)
[email protected]
JOHN P. MOGG (Cal. Bar No. 219875)
[email protected]
44 Montgomery Street, Suite 2800
San Francisco, California 94104
Telephone: (415) 705-2500
Facsimile: (415) 705-2501
JOSEPH G. SANSONE (NY Bar No. 4043659)
[email protected]
100 Pearl St., Suite 20-100
New York, NY 10004-2616
Telephone: (212) 336-1100
Attorneys for Plaintiff
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE C
OMMISSION,
Plaintiff,
v.
ANDREAS BECHTOLSHEIM,
Defendant.
Case No. C-
[PROPOSED] FINAL JUDGMENT AS TO
DEFENDANT ANDREAS
BECHTOLSHEIM
The Securities and Exchange Commission having filed a Complaint and Defendant Andreas
Bechtolsheim (“Defendant”) 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 without admitting or denying the allegations of the Complaint (except as to jurisdiction
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN JOSE DIVISION

[PROPOSED] FINAL JUDGMENT AS TO
DEFENDANT ANDREAS BECHTOLSHEIM
2CASE NO. C-
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and except as otherwise provided herein in paragraph V); 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 Defendant is 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 following who receive
actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s officers,
agents, servants, employees, and attorneys; and (b) other persons in active concert or participation
with Defendant or with anyone described in (a).
II.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to Section
21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)], Defendant is prohibited, for five (5) years
following the date of entry of this Final Judgment, from acting as an officer or director of any issuer
that has a class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l]
or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)].

[PROPOSED] FINAL JUDGMENT AS TO
DEFENDANT ANDREAS BECHTOLSHEIM
3CASE NO. C-
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III.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay a
civil penalty in the amount of $923,740 to the Securities and Exchange Commission pursuant to
Section 21A of the Exchange Act [15 U.S.C. § 78u-1]. Defendant shall make this payment within
30 days after entry of this Final Judgment.
Defendant 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 SEC website at http://www.sec.gov/about/offices/ofm.htm.
Defendant 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
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; Andreas Bechtolsheim as a defendant in this action; and specifying that payment is made
pursuant to this Final Judgment.
Defendant shall simultaneously transmit photocopies of evidence of payment and case
identifying information to the Commission’s counsel in this action. By making this payment,
Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part 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 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. Defendant 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.

[PROPOSED] FINAL JUDGMENT AS TO
DEFENDANT ANDREAS BECHTOLSHEIM
4CASE NO. C-
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IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is
incorporated herein with the same force and effect as if fully set forth herein, and that Defendant
shall comply with all of the undertakings and agreements set forth therein.
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
allegations in the Complaint are true and admitted by Defendant, and further, any debt for
disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant 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 Defendant 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.
Dated: _________________, _____
____________________________________
UNITED STATES DISTRICT JUDGE
May 302024

OCR text (7,878c · tika · 95% conf)

MONIQUE C. WINKLER (Cal. Bar No. 213031)
[email protected]
JASON H. LEE (Cal. Bar No. 253140)
[email protected]
RAHUL KOLHATKAR (Cal. Bar No. 261781)
[email protected]
JOHN P. MOGG (Cal. Bar No. 219875)
[email protected]
44 Montgomery Street, Suite 2800
San Francisco, California 94104
Telephone: (415) 705-2500
Facsimile: (415) 705-2501

JOSEPH G. SANSONE (NY Bar No. 4043659)
[email protected]
100 Pearl St., Suite 20-100
New York, NY 10004-2616
Telephone: (212) 336-1100

Attorneys for Plaintiff
SECURITIES AND EXCHANGE COMMISSION

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,

ANDREAS BECHTOLSHEIM,

Defendant.

Case No. C-

[PROPOSED] FINAL JUDGMENT AS TO
DEFENDANT ANDREAS
BECHTOLSHEIM

The Securities and Exchange Commission having filed a Complaint and Defendant Andreas

Bechtolsheim (“Defendant”) 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 without admitting or denying the allegations of the Complaint (except as to jurisdiction

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

Case 5:24-cv-01845-PCP Document 8 Filed 05/30/24 Page 1 of 4

[PROPOSED] FINAL JUDGMENT AS TO

DEFENDANT ANDREAS BECHTOLSHEIM
2 CASE NO. C-

and except as otherwise provided herein in paragraph V); waived findings of fact and conclusions of

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

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 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

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 following who receive

actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s officers,

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

with Defendant or with anyone described in (a).

II.

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

21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)], Defendant is prohibited, for five (5) years

following the date of entry of this Final Judgment, from acting as an officer or director of any issuer

that has a class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l]

or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)].

Case 5:24-cv-01845-PCP Document 8 Filed 05/30/24 Page 2 of 4

[PROPOSED] FINAL JUDGMENT AS TO

DEFENDANT ANDREAS BECHTOLSHEIM
3 CASE NO. C-

III.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay a

civil penalty in the amount of $923,740 to the Securities and Exchange Commission pursuant to

Section 21A of the Exchange Act [15 U.S.C. § 78u-1]. Defendant shall make this payment within

30 days after entry of this Final Judgment.

Defendant 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 SEC website at http://www.sec.gov/about/offices/ofm.htm.

Defendant 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
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; Andreas Bechtolsheim as a defendant in this action; and specifying that payment is made

pursuant to this Final Judgment.

Defendant shall simultaneously transmit photocopies of evidence of payment and case

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

Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part 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 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. Defendant 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.

Case 5:24-cv-01845-PCP Document 8 Filed 05/30/24 Page 3 of 4

[PROPOSED] FINAL JUDGMENT AS TO

DEFENDANT ANDREAS BECHTOLSHEIM
4 CASE NO. C-

IV.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is

incorporated herein with the same force and effect as if fully set forth herein, and that Defendant

shall comply with all of the undertakings and agreements set forth therein.

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

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

disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant 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 Defendant 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.

Dated: _________________, _____

____________________________________

UNITED STATES DISTRICT JUDGE

May 30 2024

Case 5:24-cv-01845-PCP Document 8 Filed 05/30/24 Page 4 of 4

Exhibit 1 Coversheet
Exhibit 1 - Proposed Final Judgment
Andreas Bechtolsheim - Proposed Final Judgment (12.15.2023)

Enriched metadata

Extracted insights

Related documents (1)