SEC v. A VTAR S. DIDLLON, No. 1:21-cv-11276, District of Massachusetts (Oct. 13, 2023) — Judgment

UNITED
STATES
DISTRICT
COURT
DISTRICT
OF
MASSACHUSETTS
SECURITIES
AND
EXCHANGE
COMMISSION,
Plaintiff,
v.
FREDERICK
L.
SHARP,
ZHIYING
YVONNE
GASARCH,
COURTNEY
KELLN,
MIKE
K.
VELDHUIS,
PAUL
SEXTON,
JACKSON
T.
FRIESEN,
WILLIAM
T.
KAITZ,
A VT
AR
S.
DIDLLON,
and
GRAHAM
R.
TAYLOR,
Defendants.
Civil
Action No.
21-CV-11276
(WGY)
FINAL
JUDGMENT
AS
TO
DEFENDANT
A VTAR
S.
DHILLON
The
Securities
and
Exchange
Commission
having
filed
a Complaint
and
Defendant
A vtar
S.
Dhillon
("Dhillon"
or
"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;
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
l0(b)
of
the
Securities
Exchange
Act
of
1934
(the
"Exchange
Act")
[15
U.S.C.
§
78j(b)]
and
Rule
lOb-5
promulgated
thereunder
[17
C.F.R.
§ 240.l0b-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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
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.
2

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).
III.
IT
IS
HEREBY
FURTHER
ORDERED,
ADJUDGED,
AND
DECREED
that
Defendant
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
3

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
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).
IV.
IT
IS
HEREBY
FURTHER
ORDERED, ADJUDGED,
AND
DECREED
that
Defendant
is permanently
restrained
and
enjoined
from
violating Section
13(d)
of
the
Exchange
Act
[15
U.S.C.
§78m(d)]
and
Rule
13d-2
promulgated
thereunder
[17
C.F.R.
§240.13d-2]
by,
directly
or
indirectly,
failing
to
file
statements
with
the
Commission
containing
the
information
required
by
Schedule
13D
[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
of
securities
which
is  specified
in
Exchange
Act
Rule
13d-l(i)
[17
C.F.R.
§ 240.13d-l(i)]
..
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,
s~rvants,
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
Defendant
is
permanently
restrained
and
enjoined
from
violating Section
16(a)
of
the
Exchange
Act
[15
U.S.C.
4

§78p(a)]
and
Rule
16a-3
promulgated
thereunder
[17
C.F.R.
§240.16a-3]
by,
directly
or
indirectly,
failing
to
file
forms
or
statements
with
the
Commission
containing
the
information
required
by
Rule
16a-3,
while
being
a  director,
officer,
or
beneficial
owner
of
more
than
ten
percent
of
any
class
of
equity
security
(other
than
an
exempted
security)
registered_
under
Section
12
of
the
Exchange
Act
[15
U.S.C.
§
781].
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).
VI.
IT
IS
HEREBY
FURTHER
ORDERED,
ADJUDGED,
AND
DECREED
that
Defendant
is permanently
barred
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.
A penny
stock
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].
VII.
IT
IS
HEREBY
FURTHER
ORDERED,
ADJUDGED,
AND
DECREED
that
Defendant
is liable
for
disgorgement
of
$9,143,548,
representing
net
profits
gained
as
a result
of
the
conduct
alleged
in
the
Complaint,
together
with
prejudgment
interest
thereon
in
the
amount
of
$1,303,236,
for
a total
of
$10,446,784.
This
sum
shall
be
offset
by
$1,493,500
that
Defendant
5

has agreed to pay to the U.S. Attorney's Office for the District of Massachusetts in U.S. v.
Dhillon, No. 22-cr-10265 (D. Mass.), but if that agreement is  vacated or rescinded, this sum shall
be paid to the Commission. Defendant shall satisfy this obligation by paying $8,953,284 to the
Securities and Exchange Commission pursuant to the terms
of the payment schedule set forth in
paragraph VIII below 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; Dhillon 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 hold the funds (collectively, the "Fund") until further order
of this
Court. The SEC may propose a plan to distribute the Fund subject to the Court's approval, and
the Court shall retain jurisdiction over the administration
of any distribution of the Fund.
6

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.
Defendant shall pay post judgment interest on any amounts due after 30 days
of entry of this
Final Judgment pursuant to 28 U .S.C. § 1961.
VIII.
Provided the offset set forth in paragraph VII for the related criminal action is not vacated
or rescinded, Dhillon shall pay the total
of disgorgement, and prejudgment interest due of
$8,953,284 to the Commission according to the following schedule: (1) $100,000 within 90 days
of entry of this Final Judgment; and (2) the remaining balance within 730 days of the entry of
this Final Judgment. Defendant shall pay the remaining balance, in whole or in part, by effecting
the sale
of certain real estate located in California that he owns through various entities, or by
otherwise paying the amount due. Promptly after the entry of this Final Judgment, Defendant
will make reasonably diligent efforts to sell these properties, including
by marketing them for
sale on commercially reasonable timing and terms through a registered real estate broker. Prior
to the closing
of the sale of any of the properties, Dhillon will provide the Conmission with all
requested information pertaining to the sale, including all
of its relevant terms. The Commission
shall secure its interests in the real properties
by the filing and recording of liens on the
properties which it will release provided the sale( s)
of the properties are commercially
reasonable.
Payments shall be deemed made on the date they are received by the Commission and
shall be applied first to post judgment interest, which accrues pursuant to 28 U.S.C. §
1961 on
any unpaid amounts due after 30 days
of the entry of Final Judgment. Prior to making the final
7

...
payment set forth herein, Dhillon shall contact the staff of the Commission for the amount due
for the final payment.
If Dhillon fails to make any payment when due as set forth herein, all outstanding
payments under this Final Judgment, including post-judgment interest, minus any payments
made, shall become due and payable immediately at the discretion
of the staff of the Commission
without further application to the Court.
IX.
IT
IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that based on
Defendant's cooperation in a Commission investigation and/or related enforcement action, the
Court is not ordering Defendant to pay a civil penalty.
If at any time following the entry of the
Final Judgment the Commission obtains information indicating that Defendant knowingly
provided materially false or misleading information or materials to the Commission
or in a
related proceeding, the Commission may, at its sole discretion and without prior notice to the
Defendant, petition the Court for an order requiring Defendant to pay a civil penalty. In
connection with any such petition and at any hearing held on such a motion: (a) Defendant will
be precluded from arguing that he did not violate the federal securities laws as alleged in the
Complaint; (b) Defendant may not challenge the validity
of the Judgment, this Consent, or any
related Undertakings; ( c) the allegations
of the Complaint, solely for the purposes of such
motion, shall be accepted as and deemed true
by the Court; and ( d) the Court may determine the
issues raised in the motion on the basis
of affidavits, declarations, excerpts of sworn deposition
or investigative testimony, and documentary evidence without regard to the standards for
summary judgment contained in Rule 56(c)
of the Federal Rules of Civil Procedure. Under these
circumstances, the parties may take discovery, including discovery from appropriate non-parties.
8

r
X.
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.
XI.
IT
IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that, 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)(l9)
of the Bankruptcy Code, 11 U.S.C. §523(a)(l9).
XII.
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.
XIII.
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:
~~Id, 2,o,~-:f
UNITED STAT'
9

Case 1:21-cv-11276-WGY   Document 404   Filed 10/10/23   Page 1 of 9

UNITED STATES DISTRICT COURT 
DISTRICT OF MASSACHUSETTS 

SECURITIES AND EXCHANGE 
COMMISSION, 

Plaintiff, 
v. 

FREDERICK L. SHARP, ZHIYING 
YVONNE GASARCH, COURTNEY 
KELLN, MIKE K. VELDHUIS, PAUL 
SEXTON, JACKSON T. FRIESEN, 
WILLIAM T. KAITZ, A VT AR S. 
DIDLLON, and GRAHAM R. TAYLOR, 

Defendants. 

Civil Action No. 21-CV-11276 (WGY) 

FINAL JUDGMENT AS TO DEFENDANT A VTAR S. DHILLON 

The Securities and Exchange Commission having filed a Complaint and Defendant A vtar 

S. Dhillon ("Dhillon" or "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; 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 l0(b) of the 

Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule lOb-5 

promulgated thereunder [17 C.F.R. § 240.l0b-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; 

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Case 1:21-cv-11276-WGY   Document 404   Filed 10/10/23   Page 2 of 9

(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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 

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. 

2 

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Case 1:21-cv-11276-WGY   Document 404   Filed 10/10/23   Page 3 of 9

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). 

III. 

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

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 

3 

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Case 1:21-cv-11276-WGY   Document 404   Filed 10/10/23   Page 4 of 9

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 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). 

IV. 

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

is permanently restrained and enjoined from violating Section 13(d) of the Exchange Act [15 

U.S.C. §78m(d)] and Rule 13d-2 promulgated thereunder [17 C.F.R. §240.13d-2] by, directly or 

indirectly, failing to file statements with the Commission containing the information required by 

Schedule 13D [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 of securities 

which is specified in Exchange Act Rule 13d-l(i) [17 C.F.R. § 240.13d-l(i)] .. 

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, s~rvants, 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 Defendant is 

permanently restrained and enjoined from violating Section 16(a) of the Exchange Act [15 U.S.C. 

4 

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Case 1:21-cv-11276-WGY   Document 404   Filed 10/10/23   Page 5 of 9

§78p(a)] and Rule 16a-3 promulgated thereunder [17 C.F.R. §240.16a-3] by, directly or indirectly, 

failing to file forms or statements with the Commission containing the information required by 

Rule 16a-3, while being a director, officer, or beneficial owner of more than ten percent of any 

class of equity security (other than an exempted security) registered_ under Section 12 of the 

Exchange Act [15 U.S.C. § 781]. 

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). 

VI. 

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

is permanently barred 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. A penny stock 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]. 

VII. 

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

is liable for disgorgement of $9,143,548, representing net profits gained as a result of the conduct 

alleged in the Complaint, together with prejudgment interest thereon in the amount of 

$1,303,236, for a total of $10,446,784. This sum shall be offset by $1,493,500 that Defendant 

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Case 1:21-cv-11276-WGY   Document 404   Filed 10/10/23   Page 6 of 9

has agreed to pay to the U.S. Attorney's Office for the District of Massachusetts in U.S. v. 

Dhillon, No. 22-cr-10265 (D. Mass.), but if that agreement is vacated or rescinded, this sum shall 

be paid to the Commission. Defendant shall satisfy this obligation by paying $8,953,284 to the 

Securities and Exchange Commission pursuant to the terms of the payment schedule set forth in 

paragraph VIII below 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; Dhillon 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 hold the funds (collectively, the "Fund") until further order of this 

Court. The SEC may propose a plan to distribute the Fund subject to the Court's approval, and 

the Court shall retain jurisdiction over the administration of any distribution of the Fund. 

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Case 1:21-cv-11276-WGY   Document 404   Filed 10/10/23   Page 7 of 9

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. 

Defendant shall pay post judgment interest on any amounts due after 30 days of entry of this 

Final Judgment pursuant to 28 U .S.C. § 1961. 

VIII. 

Provided the offset set forth in paragraph VII for the related criminal action is not vacated 

or rescinded, Dhillon shall pay the total of disgorgement, and prejudgment interest due of 

$8,953,284 to the Commission according to the following schedule: (1) $100,000 within 90 days 

of entry of this Final Judgment; and (2) the remaining balance within 730 days of the entry of 

this Final Judgment. Defendant shall pay the remaining balance, in whole or in part, by effecting 

the sale of certain real estate located in California that he owns through various entities, or by 

otherwise paying the amount due. Promptly after the entry of this Final Judgment, Defendant 

will make reasonably diligent efforts to sell these properties, including by marketing them for 

sale on commercially reasonable timing and terms through a registered real estate broker. Prior 

to the closing of the sale of any of the properties, Dhillon will provide the Conmission with all 

requested information pertaining to the sale, including all of its relevant terms. The Commission 

shall secure its interests in the real properties by the filing and recording of liens on the 

properties which it will release provided the sale( s) of the properties are commercially 

reasonable. 

Payments shall be deemed made on the date they are received by the Commission and 

shall be applied first to post judgment interest, which accrues pursuant to 28 U.S.C. § 1961 on 

any unpaid amounts due after 30 days of the entry of Final Judgment. Prior to making the final 

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... 

payment set forth herein, Dhillon shall contact the staff of the Commission for the amount due 

for the final payment. 

If Dhillon fails to make any payment when due as set forth herein, all outstanding 

payments under this Final Judgment, including post-judgment interest, minus any payments 

made, shall become due and payable immediately at the discretion of the staff of the Commission 

without further application to the Court. 

IX. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that based on 

Defendant's cooperation in a Commission investigation and/or related enforcement action, the 

Court is not ordering Defendant to pay a civil penalty. If at any time following the entry of the 

Final Judgment the Commission obtains information indicating that Defendant knowingly 

provided materially false or misleading information or materials to the Commission or in a 

related proceeding, the Commission may, at its sole discretion and without prior notice to the 

Defendant, petition the Court for an order requiring Defendant to pay a civil penalty. In 

connection with any such petition and at any hearing held on such a motion: (a) Defendant will 

be precluded from arguing that he did not violate the federal securities laws as alleged in the 

Complaint; (b) Defendant may not challenge the validity of the Judgment, this Consent, or any 

related Undertakings; ( c) the allegations of the Complaint, solely for the purposes of such 

motion, shall be accepted as and deemed true by the Court; and ( d) the Court may determine the 

issues raised in the motion on the basis of affidavits, declarations, excerpts of sworn deposition 

or investigative testimony, and documentary evidence without regard to the standards for 

summary judgment contained in Rule 56(c) of the Federal Rules of Civil Procedure. Under these 

circumstances, the parties may take discovery, including discovery from appropriate non-parties. 

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r 

X. 

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. 

XI. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that, 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)(l9) of the Bankruptcy Code, 11 U.S.C. §523(a)(l9). 

XII. 

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. 

XIII. 

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: ~~Id, 2,o,~-:f 

UNITED STAT' 

9