2021-04-28 sec-litreleases pdf 6701 KB 9,770 chars

SEC v. MARK J. AHN, No. 1:21-cv-10203, District of Massachusetts (Apr. 28, 2021)

raw: SEC v. MARK J. AHN

SEC v. MARK J. AHN, No. 1:21-cv-10203 (Apr. 28, 2021)

Caption: Securities & Exchange Commission v. Ahn

summary

Mark J. Ahn entered a consent judgment with the SEC, admitting to securities fraud violations and accepting a permanent injunction and officer/director bar.

paragraph

Mark J. Ahn entered a consent judgment to resolve SEC allegations of violating Section 10(b) of the Exchange Act and Rule 10b-5. Having already pleaded guilty to criminal securities fraud under 18 U.S.C. § 1348, Ahn agreed to a permanent injunction and a ban from serving as an officer or director of any reporting issuer. While the specific amount of civil penalties remains subject to a motion by the Commission, Ahn waived his right to seek reimbursement or tax deductions for any penalties paid.

narrative

Mark J. Ahn entered into a consent judgment with the Securities and Exchange Commission to resolve allegations of securities fraud. Ahn had previously pleaded guilty to criminal conduct involving violations of 18 U.S.C. § 1348 in a related criminal proceeding. Under the terms of the settlement, Ahn is permanently enjoined from violating Section 10(b) of the Exchange Act and Rule 10b-5. He is also prohibited from serving as an officer or director of any issuer required to file reports under the Exchange Act. Although the exact amount of civil penalties is to be determined by the Court upon the Commission's motion, Ahn agreed not to seek indemnification or tax deductions for any penalties paid. Additionally, Ahn waived his rights to a jury trial, an appeal, and any claims of double jeopardy regarding this proceeding.

Enriched metadata

Scheme: corporate-fraud (95%)
Court: District of Massachusetts
Case No.: 1:21-cv-10203
Outcome: pleaded

Classified corporate-fraud(confidence 95%). EDGAR detection: forms 10-K/10-Q/8-K· recall 56% / precision 8%. detection rule →

Extracted insights

Entities 4

person defendant mark j. ahn
person mark j. ahn
agency Securities and Exchange Commission
person this consent voluntarily

Triples 127

Mark J. Ahn pleaded guilty to violating 18 U.S.C. § 1348
Mark J. Ahn consents to entry of the Judgment
the Judgment permanently restrains Mark J. Ahn from violation of Section 10(b) of the Securities Exchange Act of 1934
the Judgment prohibits Mark J. Ahn from acting as an officer or director of any issuer
Mark J. Ahn agrees that the Court shall determine whether it is appropriate to order civil penalties pursuant to Section 21A of the Exchange Act
Mark J. Ahn waives the entry of findings of fact and conclusions of law
Mark J. Ahn waives the right to a jury trial and to appeal from the entry of the Judgment
Mark J. Ahn agrees not to seek reimbursement or indemnification for any civil penalty amounts
Defendant Mark J. Ahn pleaded guilty to violating 18 U.S.C. § 1348
Defendant Mark J. Ahn admits the facts set forth in the Information filed in the Criminal Action
Defendant Mark J. Ahn consents to entry of the Judgment
Defendant Mark J. Ahn permits the Court to determine whether it is appropriate to order civil penalties
Defendant Mark J. Ahn agrees not to seek or accept reimbursement or indemnification from any source
Defendant Mark J. Ahn waives the entry of findings of fact and conclusions of law
Defendant Mark J. Ahn waives the right to a jury trial and to appeal from the entry of the Judgment
Defendant Mark J. Ahn pleaded guilty to violating 18 U.S.C. § 1348
Defendant Mark J. Ahn admits the facts set forth in the Information filed in the Criminal Action
Defendant Mark J. Ahn consents to entry of the Judgment
Defendant Mark J. Ahn permits the Court to determine whether it is appropriate to order civil penalties
Defendant Mark J. Ahn agrees not to seek or accept reimbursement or indemnification from any source
Defendant Mark J. Ahn waives the entry of findings of fact and conclusions of law
Defendant Mark J. Ahn waives the right to a jury trial and to appeal from the entry of the Judgment
Defendant Mark J. Ahn pleaded guilty to violating 18 U.S.C. § 1348
Defendant Mark J. Ahn admits the facts set forth in the Information filed in the Criminal Action
Defendant Mark J. Ahn consents to entry of the Judgment
Defendant Mark J. Ahn permits the Court to determine whether it is appropriate to order civil penalties
Defendant Mark J. Ahn agrees not to seek or accept reimbursement or indemnification from any source
Defendant Mark J. Ahn agrees not to claim a tax deduction or tax credit with regard to any federal, state, or local tax
Defendant Mark J. Ahn waives the entry of findings of fact and conclusions of law
Defendant Mark J. Ahn waives the right to a jury trial and to appeal from the entry of the Judgment
MARK J. AHN pleaded guilty to violating 18 U.S.C. § 1348
MARK J. AHN admitted the facts set forth in the Information filed in United States v. Ahn, Crim. No. 1:21-cr-10047-RGS
MARK J. AHN consents to entry of Judgment that permanently restrains and enjoins him from violating Section 10(b) of the Exchange Act and Rule 10b-5
MARK J. AHN agrees to prohibition from acting as an officer or director of any issuer with securities registered under Section 12 or required to file under Section 15(d) of the Exchange Act
MARK J. AHN agrees that the Court may determine civil penalties under Section 21A of the Exchange Act upon motion of the Commission
MARK J. AHN agrees not to seek reimbursement or indemnification for any civil penalty amounts paid pursuant to the Judgment
MARK J. AHN agrees not to claim a tax deduction or credit for any penalty amounts paid pursuant to the Judgment
MARK J. AHN pleaded guilty to violating 18 U.S.C. § 1348
MARK J. AHN admitted the facts set forth in the Information filed in United States v. Ahn, Crim. No. 1:21-cr-10047-RGS
MARK J. AHN consents to entry of Judgment that permanently restrains and enjoins him from violating Section 10(b) of the Exchange Act and Rule 10b-5
MARK J. AHN prohibits himself from acting as an officer or director of any issuer with securities registered under Section 12 or required to file under Section 15(d) of the Exchange Act
MARK J. AHN agrees to allow the Court to determine civil penalties under Section 21A of the Exchange Act upon motion of the SEC
MARK J. AHN agrees not to seek or accept reimbursement or indemnification for any civil penalties paid pursuant to the Judgment
MARK J. AHN agrees not to claim, assert, or apply for a tax deduction or credit for any penalty amounts paid pursuant to the Judgment
MARK J. AHN pleaded guilty to violating 18 U.S.C. § 1348
MARK J. AHN admitted the facts set forth in the Information filed in United States v. Ahn, Crim. No. 1:21-cr-10047-RGS
MARK J. AHN consents to entry of Judgment that permanently restrains and enjoins him from violating Section 10(b) of the Exchange Act and Rule 10b-5
MARK J. AHN prohibits himself from acting as an officer or director of any issuer with securities registered under Section 12 or required to file under Section 15(d) of the Exchange Act
MARK J. AHN agrees to allow the Court to determine civil penalties under Section 21A of the Exchange Act upon motion of the Commission
MARK J. AHN agrees not to seek or accept reimbursement or indemnification for any civil penalty paid pursuant to the Judgment
MARK J. AHN agrees not to claim, assert, or apply for a tax deduction or credit for any penalty paid pursuant to the Judgment
Mark J. Ahn pleaded guilty to violating 18 U.S.C. § 1348
Mark J. Ahn consents to entry of the Judgment
Mark J. Ahn agrees that the Court shall determine whether it is appropriate to order civil penalties
Mark J. Ahn agrees that he shall not seek or accept reimbursement or indemnification
Mark J. Ahn agrees that he shall not claim, assert, or apply for a tax deduction or tax credit
Mark J. Ahn waives the right to a jury trial
Mark J. Ahn waives the right to appeal from the entry of the Judgment
Mark J. Ahn admits the Court’s jurisdiction
Mark J. Ahn admits the facts set forth in the Information
MARK J. AHN pleaded guilty to violating 18 U.S.C. § 1348
MARK J. AHN admitted the facts set forth in the Information filed in United States v. Ahn, Crim. No. 1:21-cr-10047-RGS
MARK J. AHN consents to entry of Judgment that permanently restrains and enjoins him from violating Section 10(b) of the Exchange Act and Rule 10b-5
MARK J. AHN prohibits himself from acting as an officer or director of any issuer with securities registered under Section 12 or required to file under Section 15(d) of the Exchange Act
MARK J. AHN agrees to allow the Court to determine civil penalties under Section 21A of the Exchange Act upon motion of the Commission
MARK J. AHN agrees not to seek or accept reimbursement or indemnification for any civil penalty amounts paid pursuant to the Judgment
MARK J. AHN agrees not to claim, assert, or apply for a tax deduction or credit for any penalty amounts paid pursuant to the Judgment
MARK J. AHN pleaded guilty to violating 18 U.S.C. § 1348
MARK J. AHN consents to entry of Judgment that permanently restrains and enjoins him from violating Section 10(b) of the Exchange Act and Rule 10b-5
MARK J. AHN prohibits himself from acting as an officer or director of any issuer with securities registered under Section 12 or required to file under Section 15(d) of the Exchange Act
MARK J. AHN agrees to not seek or accept reimbursement or indemnification for any civil penalties paid pursuant to the Judgment
MARK J. AHN agrees to not claim, assert, or apply for a tax deduction or credit for any penalty amounts paid pursuant to the Judgment
Mark J. Ahn pleaded guilty to violating 18 U.S.C. § 1348
Mark J. Ahn admitted facts set forth in the Information filed in the Criminal Action
Mark J. Ahn consents to entry of Judgment
Mark J. Ahn is permanently restrained from violation of Section 10(b) of the Exchange Act
Mark J. Ahn is prohibited from acting as an officer or director of any issuer with registered securities
Mark J. Ahn agrees to civil penalties under Section 21A of the Exchange Act
Mark J. Ahn waives findings of fact and conclusions of law
Mark J. Ahn waives right to jury trial
Mark J. Ahn waives right to appeal
Mark J. Ahn agrees not to seek reimbursement or indemnification for civil penalties
Mark J. Ahn agrees not to claim tax deduction or credit for penalty amounts
Securities and Exchange Commission files complaint against Mark J. Ahn
Court has jurisdiction over Mark J. Ahn
Defendant enters general appearance in the action
Defendant acknowledges service of the complaint
Defendant admits the Court’s jurisdiction
Defendant Mark J. Ahn acknowledges having been served with the complaint in this action
Defendant Mark J. Ahn enters a general appearance
Defendant Mark J. Ahn pleaded guilty to criminal conduct relating to certain matters alleged in the complaint
Defendant Mark J. Ahn pleaded guilty to violating 18 U.S.C. § 1348
Defendant Mark J. Ahn admitted the facts set forth in the Information filed in the Criminal Action
Defendant Mark J. Ahn consents to entry of the Judgment
Judgment restrains and enjoins Defendant from violation of Section 10(b) of the Securities Exchange Act of 1934
Judgment prohibits Defendant from acting as an officer or director of any issuer with registered securities
Defendant Mark J. Ahn agrees that the Court shall determine whether to order civil penalties upon motion of the Commission
Defendant Mark J. Ahn will be precluded from arguing that he did not violate the federal securities laws as alleged in the complaint
Defendant Mark J. Ahn may not challenge the validity of this Consent or the Judgment
Defendant Mark J. Ahn shall not seek or accept reimbursement or indemnification from any source regarding civil penalty amounts paid pursuant to the Judgment
Defendant Mark J. Ahn shall not claim a tax deduction or tax credit for penalty amounts paid pursuant to the Judgment
Defendant Mark J. Ahn waives the entry of findings of fact and conclusions of law
Defendant Mark J. Ahn waives the right to a jury trial and to appeal from the entry of the Judgment
Defendant Mark J. Ahn enters into this Consent voluntarily
Defendant Mark J. Ahn represents that no threats, offers, promises, or inducements have been made by the Commission
Mark J. Ahn pleaded guilty to violating 18 U.S.C. § 1348
Mark J. Ahn consents to entry of the Judgment
the Judgment permanently restrains Mark J. Ahn from violation of Section 10(b) of the Securities Exchange Act of 1934
the Judgment prohibits Mark J. Ahn from acting as an officer or director of any issuer
Mark J. Ahn agrees that the Court shall determine whether it is appropriate to order civil penalties pursuant to Section 21A of the Exchange Act
Mark J. Ahn agrees that he shall not seek reimbursement or indemnification from any source
Mark J. Ahn waives the entry of findings of fact and conclusions of law
Mark J. Ahn waives the right to a jury trial and to appeal
Mark J. Ahn acknowledges service of the complaint
Mark J. Ahn enters a general appearance
Mark J. Ahn admits the Court's jurisdiction
Mark J. Ahn pleaded guilty to criminal conduct
Mark J. Ahn pleaded guilty to violating 18 U.S.C. § 1348
Mark J. Ahn admitted facts set forth in the Information
Mark J. Ahn consents to entry of the Judgment
The Judgment restrains Defendant from violation of Section 10(b)
The Judgment prohibits Defendant from acting as an officer or director
Mark J. Ahn agrees to Court determination of civil penalties
Mark J. Ahn will not seek reimbursement or indemnification
Mark J. Ahn will not claim a tax deduction or tax credit
Mark J. Ahn waives entry of findings of fact and conclusions of law
Mark J. Ahn waives the right to a jury trial and to appeal

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SEC v. MARK J. AHN · Source

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Extracted body text (9,770c)

UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS

SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
v.
MARK J. AHN,
Defendant.
No. 1:21-cv-10203-ADB

CONSENT OF DEFENDANT MARK J. AHN

1. Defendant Mark J. Ahn (“Defendant”) acknowledges having been served with the complaint in this action, enters a general appearance, and admits the Court’s jurisdiction over Defendant and over the subject matter of this action.

2. Defendant pleaded guilty to criminal conduct relating to certain matters alleged in the complaint in this action. Specifically, in United States v. Ahn, Crim. No. 1:21-cr-10047-RGS (D. Mass.), Defendant pleaded guilty to violating 18 U.S.C. § 1348. In connection with that plea, Defendant admitted the facts set forth in the Information filed in the Criminal Action (Criminal Action ECF Nos. 1, 12). This Consent shall remain in full force and effect regardless of the existence or outcome of any further proceedings in United States v. Ahn.

3. Defendant hereby consents to entry of the Judgment in the form attached hereto (the “Judgment”) and incorporated by reference herein, which, among other things:

a. permanently restrains and enjoins Defendant from violation of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. § 78j(b), and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5; and
b. prohibits Defendant from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 781] or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78(o)(d)].

4. Defendant agrees that, upon motion of the Commission, the Court shall determine whether it is appropriate to order civil penalties pursuant to Section 21A of the Exchange Act, 15 U.S.C. § 78u-1 and, if so, the amount of the civil penalties. Defendant further agrees that in connection with the Commission's motion for civil penalties, 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 this Consent or the Judgment; (c) solely for the purposes of such motion, the allegations of the complaint 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. In connection with the Commission's motion for civil penalties, the parties may take discovery, including discovery from appropriate non-parties.

5. Defendant agrees that he shall not seek or accept, directly or indirectly, reimbursement or indemnification from any source, including but not limited to payment made pursuant to any insurance policy, with regard to any civil penalty amounts that Defendant pays pursuant to the Judgment, regardless of whether such penalty amounts or any part thereof are added to a distribution fund or otherwise used for the benefit of investors. Defendant further agrees that he shall not claim, assert, or apply for a tax deduction or tax credit with regard to any federal, state, or local tax for any penalty amounts that Defendant pays pursuant to the Judgment, regardless of whether such penalty amounts or any part thereof are added to a distribution fund or otherwise used for the benefit of investors.

6. Defendant waives the entry of findings of fact and conclusions of law pursuant to Rule 52 of the Federal Rules of Civil Procedure.

7. Defendant waives the right, if any, to a jury trial and to appeal from the entry of the Judgment.

8. Defendant enters into this Consent voluntarily and represents that no threats, offers, promises, or inducements of any kind have been made by the Commission or any member, officer, employee, agent, or representative of the Commission to induce Defendant to enter into this Consent.

9. Defendant agrees that this Consent shall be incorporated into the Judgment with the same force and effect as if fully set forth therein.

10. Defendant will not oppose the enforcement of the Judgment on the ground, if any exists, that it fails to comply with Rule 65(d) of the Federal Rules of Civil Procedure, and hereby waives any objection based thereon.

11. Defendant waives service of the Judgment and agrees that entry of the Judgment by the Court and filing with the Clerk of the Court will constitute notice to Defendant of its terms and conditions. Defendant further agrees to provide counsel for the Commission, within thirty days after the Judgment is filed with the Clerk of the Court, with an affidavit or declaration stating that Defendant has received and read a copy of the Judgment.

12. Consistent with 17 C.F.R. § 202.5(f), this Consent resolves only the claims asserted against Defendant in this civil proceeding. Defendant acknowledges that no promise or representation has been made by the Commission or any member, officer, employee, agent, or representative of the Commission with regard to any criminal liability that may have arisen or may arise from the facts underlying this action or immunity from any such criminal liability. Defendant waives any claim of Double Jeopardy based upon the settlement of this proceeding, including the imposition of any remedy or civil penalty herein. Defendant further acknowledges that the Court's entry of a permanent injunction may have collateral consequences under federal or state law and the rules and regulations of self-regulatory organizations, licensing boards, and other regulatory organizations. Such collateral consequences include, but are not limited to, a statutory disqualification with respect to membership or participation in, or association with a member of, a self-regulatory organization. This statutory disqualification has consequences that are separate from any sanction imposed in an administrative proceeding. In addition, in any disciplinary proceeding before the Commission based on the entry of the injunction in this action, Defendant understands that he shall not be permitted to contest the factual allegations of the complaint in this action.

13. Defendant understands and agrees to comply with the terms of 17 C.F.R. § 202.5(e), which provides in part that it is the Commission's policy "not to permit a defendant or respondent to consent to a judgment or order that imposes a sanction while denying the allegations in the complaint or order for proceedings." As part of Defendant's agreement to comply with the terms of Section 202.5(e), Defendant acknowledges the guilty plea for related

conduct described in Paragraph 2 above, and: (i) will not take any action or make or permit to be made any public statement denying, directly or indirectly, any allegation in the complaint or creating the impression that the complaint is without factual basis; (ii) will not make or permit to be made any public statement to the effect that Defendant does not admit the allegations of the complaint, or that this Consent contains no admission of the allegations; (iii) upon the filing of this Consent, Defendant hereby withdraws any papers filed in this action to the extent that they deny any allegation in the complaint; and (iv) stipulates for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, that the allegations in the complaint are true, and further, that any debt for civil penalties or other amounts due by Defendant under the 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). If Defendant breaches this agreement, the Commission may petition the Court to vacate the Judgment and restore this action to its active docket. Nothing in this paragraph affects Defendant’s: (i) testimonial obligations; or (ii) right to take legal or factual positions in litigation or other legal proceedings in which the Commission is not a party.

14. Defendant hereby waives any rights under the Equal Access to Justice Act, the Small Business Regulatory Enforcement Fairness Act of 1996, or any other provision of law to seek from the United States, or any agency, or any official of the United States acting in his or her official capacity, directly or indirectly, reimbursement of attorney’s fees or other fees, expenses, or costs expended by Defendant to defend against this action. For these purposes,

---

Defendant agrees that Defendant is not the prevailing party in this action since the parties have reached a good faith settlement.

15. Defendant agrees that the Commission may present the Judgment to the Court for signature and entry without further notice.

16. Defendant agrees that this Court shall retain jurisdiction over this matter for the purpose of enforcing the terms of the Judgment.

Dated: 4/14/21
Mark J. Ahn

On April 14, 2021, Mark J. Ahn, a person known to me, personally appeared before me and acknowledged executing the foregoing Consent.

OFFICIAL STAMP
RHONDA SUE MANGUM
NOTARY PUBLIC-OREGON
COMMISSION NO 992380
MY COMMISSION EXPIRES OCTOBER 3, 2023

Rhonda S mangum
Notary Public
Commission expires: 10.3.2023

Approved as to form:

BRUCH HANNA LLP

Sandra M. Hanna (pro hac vice)
1099 New York Avenue, Suite 500
Washington, DC 20001
(202) 969-1630

Attorneys for Defendant

Dated: April 15, 2021

OCR text (9,770c · tika+glm · 85% conf)