SEC v. Barry B. Schwartz, No. 1:17-cv-07793, Southern District of New York (May 5, 2020) — Judgment

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
V.
LISA BERSHAN, et al.,
Defendants.
No. 17 CV 7793 (JGK)
FINAL JUDGMENT AS TO DEFENDANT BARRY B. SCHWARTZ
The Securities and Exchange Commission having filed a Complaint and Defendant Barry
B. Schwartz ("Schwartz") 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.lOb-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
2

(c)to engage in any transaction, practice, or course of business which operates or
would operate as a fraud or deceit upon the purchaser.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this 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 FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable
for disgorgement of $2,257,531.54 representing profits gained as a result of the conduct alleged
in the Complaint, together with prejudgment interest thereon in the amount of $68,215.60, for a
total of $2,325,747.14. Defendant's $2,325,747.14 payment obligation shall be offset in an
amount equal to the Order of Restitution for the amount of $2,360,631.54 in the Judgment
entered against Defendant in United States v. Bershan, et al. (United States v. Schwartz), No. 17
Cr. 638-JSR (S.D.N.Y.).
IV.
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.
3

UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF NEW YORK 

SECURITIES AND EXCHANGE COMMISSION, 

Plaintiff, 

V. 

LISA BERSHAN, et al., 

Defendants. 

No. 17 CV 7793 (JGK) 

FINAL JUDGMENT AS TO DEFENDANT BARRY B. SCHWARTZ 

The Securities and Exchange Commission having filed a Complaint and Defendant Barry 

B. Schwartz ("Schwartz") 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.lOb-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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(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

2 

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

would operate as a fraud or deceit upon the purchaser.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in 

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 

receive actual notice of this 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 FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable 

for disgorgement of $2,257,531.54 representing profits gained as a result of the conduct alleged 

in the Complaint, together with prejudgment interest thereon in the amount of $68,215.60, for a 

total of $2,325,747.14. Defendant's $2,325,747.14 payment obligation shall be offset in an 

amount equal to the Order of Restitution for the amount of $2,360,631.54 in the Judgment 

entered against Defendant in United States v. Bershan, et al. (United States v. Schwartz), No. 17 

Cr. 638-JSR (S.D.N.Y.). 

IV. 

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. 

3 

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