SEC v. KAI CHRISTIAN PETERSEN, No. 2:19-cv-08334-JWH, Central District of California (May 25, 2021) — Judgment

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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
vs.
KAI CHRISTIAN PETERSEN; GIL
BESERGLIK; and RAZ BESERGLIK,
Defendants,
SHRAGA HOLDINGS, LTD. and
LEMBEX GLOBAL INVESTMENTS,
LTD.,
Relief Defendants
Case No. 2:19-cv-08334-JWH-RAOx
Hon. John W. Holcomb
FINAL JUDGMENT AS TO
DEFENDANT KAI CHRISTIAN
PETERSEN

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The Securities and Exchange Commission having filed a Complaint and
consented to the dismissal as to Defendant Kai Christian Petersen (“Defendant”) of
the First, Second, Third, Seventh, and Eighth Claims for Relief in the Complaint, but
not the Fourth, Fifth, and Sixth Claims for Relief in the Complaint; and Defendant
having entered a general appearance; consented to the Court’s jurisdiction over him
and the subject matter of this action; consented to entry of this Final Judgment
without admitting or denying the factual allegations of the Complaint (except as to
jurisdiction and except as otherwise provided herein); 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 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
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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 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, 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).
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III.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is permanently restrained and enjoined from , directly or indirectly, unless Defendant
is registered with the SEC in accordance with Section 15(b) of the Securities
Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78o(b)], and in the absence
of any applicable exemption, acting as a broker-dealer in the United States or
otherwise making use of the mails or any means or instrumentality of interstate
commerce to effect any transactions in, or to induce or attempt to induce the purchase
or sale of, binary options or any other security (other than an exempted security or
commercial paper, bankers’ acceptances, or commercial bills) in the United States, in
violation of Section 15(a) of the Exchange Act [15 U.S.C. § 78o(a)].
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,
pursuant to Section 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(5)], Defendant
is permanently restrained and enjoined from directly or indirectly, including but not
limited to, through any entity he owns, operates, manages or controls, engaging in
any activity for the purpose of:  (a) inducing or attempting to induce the purchase or
sale of binary options, securities-based swaps, or other securities, over the Internet or
via email or other forms of electronic communication; (b) causing any person or
entity to engage in any activity for the purpose of inducing or attempting to induce
the purchase or sale of binary options, securities-based swaps, or other securities,
over the Internet or via email or other forms of electronic communication; or
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(c) deriving compensation from any activity inducing or attempting to induce the
purchase or sale of binary options, securities-based swaps, or other securities, over
the Internet or via email or other forms of electronic communication.  This injunction,
however, shall not prohibit Defendant from buying or selling securities for his own
personal account.
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).
V.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant is liable for disgorgement of $192,000, representing net profits gained as a
result of the conduct alleged in the Complaint, together with prejudgment interest
thereon in the amount of $8,296, and a civil penalty in the amount of $100,000
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 $300,296 to the Securities and Exchange
Commission pursuant to the terms of the payment schedule set forth in paragraph VI
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
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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; Kai Christian Petersen 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 Judgement
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.
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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 he is entitled
to, nor shall he 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.
VI.
Defendant shall pay the total of disgorgement, prejudgment interest, and
penalty due of $300,296 in installments to the Commission according to the
following schedule:  (1) at least $100,000, within ten days of entry of this Final
Judgment; and (2) the remaining amount due (consisting of no less than $200,296 and
any post judgment interest as provided for below) paid within two years from the
entry of this Final Judgment.  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.  Payments from Defendant will then apply to paying
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off the penalty amount.  Once Defendant fully satisfies the penalty amount, additional
payments will apply to satisfying Defendant’s disgorgement and prejudgment interest
obligations.  Prior to making the final payment set forth herein, Defendant shall
contact the Commission’s staff for the amount due for the final payment.
If Defendant fails to make any payment by the date agreed and/or in the
amount agreed according to the schedule set forth above, 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
Commission’s staff without further application to the Court.
VII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the
Consent of Defendant 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.
VIII.
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).
IX.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the First,
Second, Third, Seventh, and Eighth Claims for Relief are dismissed as to Defendant
with prejudice.
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John W. Holcomb
UNITED STATES DISTRICT JUDGE

X.
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.
IT IS SO ORDERED.
Dated: April 20, 2021
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Case 2:19-cv-08334-JWH-RAO Document 53 Filed 04/20/21 Page 1 of 9 Page ID #:325 

UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

SECURITIES AND EXCHANGE 
COMMISSION, 

Plaintiff, 

vs. 

KAI CHRISTIAN PETERSEN; GIL 
BESERGLIK; and RAZ BESERGLIK, 

Defendants, 

SHRAGA HOLDINGS, LTD. and
LEMBEX GLOBAL INVESTMENTS, 
LTD., 

Relief Defendants 

Case No. 2:19-cv-08334-JWH-RAOx 

Hon. John W. Holcomb 

FINAL JUDGMENT AS TO 
DEFENDANT KAI CHRISTIAN 
PETERSEN 



 

 

 

 

 

 

 

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Case 2:19-cv-08334-JWH-RAO Document 53 Filed 04/20/21 Page 2 of 9 Page ID #:326 

The Securities and Exchange Commission having filed a Complaint and 

consented to the dismissal as to Defendant Kai Christian Petersen (“Defendant”) of 

the First, Second, Third, Seventh, and Eighth Claims for Relief in the Complaint, but 

not the Fourth, Fifth, and Sixth Claims for Relief in the Complaint; and Defendant 

having entered a general appearance; consented to the Court’s jurisdiction over him 

and the subject matter of this action; consented to entry of this Final Judgment 

without admitting or denying the factual allegations of the Complaint (except as to 

jurisdiction and except as otherwise provided herein); 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 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 

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Case 2:19-cv-08334-JWH-RAO Document 53 Filed 04/20/21 Page 3 of 9 Page ID #:327 

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 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, 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). 

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Case 2:19-cv-08334-JWH-RAO Document 53 Filed 04/20/21 Page 4 of 9 Page ID #:328 

III. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 

is permanently restrained and enjoined from , directly or indirectly, unless Defendant 

is registered with the SEC in accordance with Section 15(b) of the Securities 

Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78o(b)], and in the absence 

of any applicable exemption, acting as a broker-dealer in the United States or 

otherwise making use of the mails or any means or instrumentality of interstate 

commerce to effect any transactions in, or to induce or attempt to induce the purchase 

or sale of, binary options or any other security (other than an exempted security or 

commercial paper, bankers’ acceptances, or commercial bills) in the United States, in 

violation of Section 15(a) of the Exchange Act [15 U.S.C. § 78o(a)]. 

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, 

pursuant to Section 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(5)], Defendant 

is permanently restrained and enjoined from directly or indirectly, including but not 

limited to, through any entity he owns, operates, manages or controls, engaging in 

any activity for the purpose of: (a) inducing or attempting to induce the purchase or 

sale of binary options, securities-based swaps, or other securities, over the Internet or 

via email or other forms of electronic communication; (b) causing any person or 

entity to engage in any activity for the purpose of inducing or attempting to induce 

the purchase or sale of binary options, securities-based swaps, or other securities, 

over the Internet or via email or other forms of electronic communication; or 

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Case 2:19-cv-08334-JWH-RAO Document 53 Filed 04/20/21 Page 5 of 9 Page ID #:329 

(c) deriving compensation from any activity inducing or attempting to induce the 

purchase or sale of binary options, securities-based swaps, or other securities, over 

the Internet or via email or other forms of electronic communication.  This injunction, 

however, shall not prohibit Defendant from buying or selling securities for his own 

personal account. 

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). 

V. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendant is liable for disgorgement of $192,000, representing net profits gained as a 

result of the conduct alleged in the Complaint, together with prejudgment interest 

thereon in the amount of $8,296, and a civil penalty in the amount of $100,000 

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 $300,296 to the Securities and Exchange 

Commission pursuant to the terms of the payment schedule set forth in paragraph VI 

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 

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http://www.sec.gov/about/offices/ofm.htm


 

 

  

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Case 2:19-cv-08334-JWH-RAO Document 53 Filed 04/20/21 Page 6 of 9 Page ID #:330 

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; Kai Christian Petersen 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 Judgement 

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. 

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Case 2:19-cv-08334-JWH-RAO Document 53 Filed 04/20/21 Page 7 of 9 Page ID #:331 

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 he is entitled 

to, nor shall he 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. 

VI. 

Defendant shall pay the total of disgorgement, prejudgment interest, and 

penalty due of $300,296 in installments to the Commission according to the 

following schedule: (1) at least $100,000, within ten days of entry of this Final 

Judgment; and (2) the remaining amount due (consisting of no less than $200,296 and 

any post judgment interest as provided for below) paid within two years from the 

entry of this Final Judgment. 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. Payments from Defendant will then apply to paying 

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Case 2:19-cv-08334-JWH-RAO Document 53 Filed 04/20/21 Page 8 of 9 Page ID #:332 

off the penalty amount. Once Defendant fully satisfies the penalty amount, additional 

payments will apply to satisfying Defendant’s disgorgement and prejudgment interest 

obligations. Prior to making the final payment set forth herein, Defendant shall 

contact the Commission’s staff for the amount due for the final payment. 

If Defendant fails to make any payment by the date agreed and/or in the 

amount agreed according to the schedule set forth above, 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 

Commission’s staff without further application to the Court. 

VII. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the 

Consent of Defendant 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. 

VIII. 

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). 

IX. 

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

Second, Third, Seventh, and Eighth Claims for Relief are dismissed as to Defendant 

with prejudice. 

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John W. Holcomb 
UNITED STATES DISTRICT JUDGE 

Case 2:19-cv-08334-JWH-RAO Document 53 Filed 04/20/21 Page 9 of 9 Page ID #:333 

X. 

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. 

IT IS SO ORDERED. 

Dated: April 20, 2021 

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