SEC v. KAI CHRISTIAN PETERSEN; GIL BESERGLIK; and RAZ BESERGLIK, 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 RAZ BESERGLIK

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The Securities and Exchange Commission having filed a Complaint and
consented to the dismissal as to Defendant Raz Beserglik (“Defendant”) of the First,
Second, 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 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 $2,000,000, representing net profits gained as
a result of the conduct alleged in the Complaint, together with prejudgment interest
thereon in the amount of $86,421, and a civil penalty in the amount of $465,000
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 $2,551,421 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; Raz Beserglik 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 $2,551,421 in installments to the Commission according to the
following schedule:  (1) at least $100,000, within forty-five days of entry of this Final
Judgment; (2) $550,000 by March 31, 2023; (3) $800,000 by November 30, 2023;
(4) $400,000 by March 31, 2024; and (5) the remaining amount due (consisting of no
less than $701,421 and any post judgment interest as provided for below) paid within
four 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
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will then apply to paying 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).
8

Johnnnnnnnnnnnnnnnnnnn WWWWWWWWWWWWWWW WWWWWWW WWW WWWW WWWWWWWWWWW WWWWWWWWWWWWWWWW . Holcomb

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John W. Holcomb

IX.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the First,
Second, Seventh and Eighth Claims for Relief are dismissed as to Defendant with
prejudice.
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
UNITED STATES DISTRICT JUDGE
UNITED STATES DISTRICT JUD
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Case 2:19-cv-08334-JWH-RAO Document 52 Filed 04/21/21 Page 1 of 9 Page ID #:316 

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 RAZ BESERGLIK 



 

 

 

 

 

 

 

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Case 2:19-cv-08334-JWH-RAO Document 52 Filed 04/21/21 Page 2 of 9 Page ID #:317 

The Securities and Exchange Commission having filed a Complaint and 

consented to the dismissal as to Defendant Raz Beserglik (“Defendant”) of the First, 

Second, 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 52 Filed 04/21/21 Page 3 of 9 Page ID #:318 

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 52 Filed 04/21/21 Page 4 of 9 Page ID #:319 

III. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that 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 52 Filed 04/21/21 Page 5 of 9 Page ID #:320 

(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 $2,000,000, representing net profits gained as 

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

thereon in the amount of $86,421, and a civil penalty in the amount of $465,000 

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 $2,551,421 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 52 Filed 04/21/21 Page 6 of 9 Page ID #:321 

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; Raz Beserglik 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. . 

6 



 

 

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Case 2:19-cv-08334-JWH-RAO Document 52 Filed 04/21/21 Page 7 of 9 Page ID #:322 

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 $2,551,421 in installments to the Commission according to the 

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

Judgment; (2) $550,000 by March 31, 2023; (3) $800,000 by November 30, 2023; 

(4) $400,000 by March 31, 2024; and (5) the remaining amount due (consisting of no 

less than $701,421 and any post judgment interest as provided for below) paid within 

four 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 

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Case 2:19-cv-08334-JWH-RAO Document 52 Filed 04/21/21 Page 8 of 9 Page ID #:323 

will then apply to paying 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). 

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Johnnnnnnnnnnnnnnnnnnn WWWWWWWWWWWWWWW WWWWWWW WWW WWWW WWWWWWWWWWW WWWWWWWWWWWWWWWW . Holcomb 

 

 

 
    

 
 

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John W. Holcomb 

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IX. 

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

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

prejudice. 

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 

UNITED STATES DISTRICT JUDGEUNITED STATES DISTRICT JUD 

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