SEC v. ARLINE E. WOODBURY; and JOYCE L. HOLVERSON, No. 1:23-cv-14255, Northern District of Illinois (Feb. 7, 2024) — Judgment

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
____________________________________
       :
U.S. SECURITIES AND EXCHANGE      :
COMMISSION,                                                :
                                                                                                :            Civil            Action            No.            23-cv-14255
                                    Plaintiff,                        :            Honorable            Edmond            E.            Chang
      :
  v.    :
      :
ARLINE E. WOODBURY and   :
JOYCE            L.            HOLVERSON,                                    :
      :
                                    Defendants.                        :
____________________________________:

  FINAL JUDGMENT BY DEFAULT
AGAINST DEFENDANT ARLINE E. WOODBURY
This matter having come before the Court on Plaintiff United States Securities and
Exchange Commission’s Motion for Default Judgment against Arline E. Woodbury (the
“Motion”), and the Court having considered the Motion, the brief filed in support of the motion,
the complaint, and the evidence, papers and arguments presented therein:
I.
 It is hereby ORDERED that the Motion is GRANTED against Arline E. Woodbury
(“Woodbury” or “Defendant”)
II.
 It is hereby ORDERED, ADJUDGED, and DECREED that Woodbury 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 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).
III.
It is hereby further ORDERED, ADJUDGED, and DECREED that Woodbury is
permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933
(the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any
means or instruments of transportation or communication in interstate commerce or by use of the
mails, 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 of a material fact necessary in order to make the statements made, in light
of the circumstances under which they were made, not misleading; 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.
            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 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).
IV.
It is hereby further ORDERED, ADJUDGED, and DECREED that Woodbury 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 or otherwise;
(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
(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].
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 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).
V.
It is hereby further ORDERED, ADJUDGED, and DECREED that, pursuant to Section
21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and Section 20(e) of the Securities Act [15
U.S.C. § 77t(e)], Defendant is prohibited 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)].
VI.
It is hereby further ORDERED, ADJUDGED, and DECREED that Woodbury is liable
for disgorgement of $199,151.37, representing profits gained as a result of the conduct alleged in
the Complaint, together with prejudgment interest thereon in the amount of $47,991.98, and a
civil penalty in the amount of $230,464 pursuant to Section 20(d) of the Securities Act [15
U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)].  Defendant
shall satisfy this obligation by paying $477,607.35 to the Securities and Exchange Commission
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; Arline E. Woodbury 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 may enforce the Court’s judgment for disgorgement and prejudgment
interest by using all collection procedures authorized by law, including, but not limited to,
moving for civil contempt at any time after 30 days following entry of this Final Judgment.
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.  The Commission shall

hold the funds, together with any interest and income earned thereon (collectively, the “Fund”),
pending further order of the Court.
The Commission may propose a plan to distribute the Fund subject to the Court’s
approval.  Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund
provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002.  The Court shall retain
jurisdiction over the administration of any distribution of the Fund and the Fund may only be
disbursed pursuant to an Order of the Court.
Regardless of whether any such Fair Fund distribution is made, amounts ordered to be
paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the
government for all purposes, including all tax purposes.  To preserve the deterrent effect of the
civil penalty, Defendant shall not, after offset or reduction of any award of compensatory
damages in any Related Investor Action based on Defendant’s payment of disgorgement in this
action, argue that she is entitled to, nor shall she further benefit by, offset or reduction of such
compensatory damages award by the amount of any part of Defendant’s payment of a civil
penalty in this action (“Penalty Offset”).  If the court in any Related Investor Action grants such
a Penalty Offset, Defendant shall, within 30 days after entry of a final order granting the Penalty
Offset, notify the Commission’s counsel in this action and pay the amount of the Penalty Offset
to the United States Treasury or to a Fair Fund, as the Commission directs.  Such a payment shall
not be deemed an additional civil penalty and shall not be deemed to change the amount of the
civil penalty imposed in this Judgment.  For purposes of this paragraph, a “Related Investor
Action” means a private damages action brought against Defendant by or on behalf of one or
more investors based on substantially the same facts as alleged in the Complaint in this action.

VII.
It is hereby 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.
VIII
.
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: 02/07/2027
____________________________________
EDMOND E. CHANG
UNITED STATES DISTRICT JUDGE

UNITED STATES DISTRICT COURT  
NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 
____________________________________ 
       : 
U.S. SECURITIES AND EXCHANGE  : 
COMMISSION,    : 
        : Civil Action No. 23-cv-14255 
   Plaintiff,  : Honorable Edmond E. Chang 
      : 
  v.    :  
      : 
ARLINE E. WOODBURY and   : 
JOYCE L. HOLVERSON,   : 
      : 
   Defendants.  : 
____________________________________: 
 

  FINAL JUDGMENT BY DEFAULT 
AGAINST DEFENDANT ARLINE E. WOODBURY 

This matter having come before the Court on Plaintiff United States Securities and 

Exchange Commission’s Motion for Default Judgment against Arline E. Woodbury (the 

“Motion”), and the Court having considered the Motion, the brief filed in support of the motion, 

the complaint, and the evidence, papers and arguments presented therein: 

I. 

 It is hereby ORDERED that the Motion is GRANTED against Arline E. Woodbury 

(“Woodbury” or “Defendant”) 

II.  

 It is hereby ORDERED, ADJUDGED, and DECREED that Woodbury 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 

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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 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). 

III. 

It is hereby further ORDERED, ADJUDGED, and DECREED that Woodbury is 

permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 

(the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any 

means or instruments of transportation or communication in interstate commerce or by use of the 

mails, 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 of a material fact necessary in order to make the statements made, in light 

of the circumstances under which they were made, not misleading; or 

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- 3 - 
 

(c) to engage in any transaction, practice, or course of business which operates or would 

operate as a fraud or deceit upon the purchaser. 

 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 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). 

IV. 

It is hereby further ORDERED, ADJUDGED, and DECREED that Woodbury 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 or otherwise; 

(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 

(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 

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- 4 - 
 

statement) any public proceeding or examination under Section 8 of the Securities Act 

[15 U.S.C. § 77h]. 

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 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). 

V. 

It is hereby further ORDERED, ADJUDGED, and DECREED that, pursuant to Section 

21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and Section 20(e) of the Securities Act [15 

U.S.C. § 77t(e)], Defendant is prohibited 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)].  

VI. 

It is hereby further ORDERED, ADJUDGED, and DECREED that Woodbury is liable 

for disgorgement of $199,151.37, representing profits gained as a result of the conduct alleged in 

the Complaint, together with prejudgment interest thereon in the amount of $47,991.98, and a 

civil penalty in the amount of $230,464 pursuant to Section 20(d) of the Securities Act [15 

U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)].  Defendant 

shall satisfy this obligation by paying $477,607.35 to the Securities and Exchange Commission 

within 30 days after entry of this Final Judgment. 

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- 5 - 
 

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; Arline E. Woodbury 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 may enforce the Court’s judgment for disgorgement and prejudgment 

interest by using all collection procedures authorized by law, including, but not limited to, 

moving for civil contempt at any time after 30 days following entry of this Final Judgment. 

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.  The Commission shall 

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- 6 - 
 

hold the funds, together with any interest and income earned thereon (collectively, the “Fund”), 

pending further order of the Court.     

The Commission may propose a plan to distribute the Fund subject to the Court’s 

approval.  Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund 

provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002.  The Court shall retain 

jurisdiction over the administration of any distribution of the Fund and the Fund may only be 

disbursed pursuant to an Order of the Court.    

Regardless of whether any such Fair Fund distribution is made, amounts ordered to be 

paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the 

government for all purposes, including all tax purposes.  To preserve the deterrent effect of the 

civil penalty, Defendant shall not, after offset or reduction of any award of compensatory 

damages in any Related Investor Action based on Defendant’s payment of disgorgement in this 

action, argue that she is entitled to, nor shall she further benefit by, offset or reduction of such 

compensatory damages award by the amount of any part of Defendant’s payment of a civil 

penalty in this action (“Penalty Offset”).  If the court in any Related Investor Action grants such 

a Penalty Offset, Defendant shall, within 30 days after entry of a final order granting the Penalty 

Offset, notify the Commission’s counsel in this action and pay the amount of the Penalty Offset 

to the United States Treasury or to a Fair Fund, as the Commission directs.  Such a payment shall 

not be deemed an additional civil penalty and shall not be deemed to change the amount of the 

civil penalty imposed in this Judgment.  For purposes of this paragraph, a “Related Investor 

Action” means a private damages action brought against Defendant by or on behalf of one or 

more investors based on substantially the same facts as alleged in the Complaint in this action. 

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- 7 - 
 

VII. 

It is hereby 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.  

VIII. 

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: 02/07/2027 

____________________________________ 
EDMOND E. CHANG 
UNITED STATES DISTRICT JUDGE 
 

 

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