SEC v. DEBORAH D. KELLEY, No. 1:16-cv-09829, Southern District of New York (Dec. 26, 2019) — Judgment

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF
NEW YORK
U.S. SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
DEBORAH D. KELLEY,
Defendant.
Case No. 16-cv-9829
FINAL JUDGMENT AS
TO DEFENDANT DEBORAH D. KELLEY
The Securities and Exchange Commission having filed a Complaint and Deborah D.
Kelley ("Defendant") having entered a general appearance; consented to the Court's jurisdiction
over Defendant and the subject matter
of this action; consented to entry of this Final Judgment;
waived findings
of fact and conclusions of law; and waived any right to appeal from this Final
Judgment:
I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
permanently restrained and enjoined from violating, directly
or indirectly, Section lO(b) of the
Securities Exchange Act
of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule lOb-5
promulgated thereunder [17 C.F.R.
§ 240.l0b-5], by using any means or instrumentality of
interstate commerce, or of the mails, or of any facility of any national securities exchange, in
connection with the purchase or sale
of any security:
(a) to employ any device, scheme, or artifice to defraud;

Case
1:16-cv-09829-PGG
Document
30-6
Filed
10/24/19

(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).
IL
IT
IS
HEREBY
FURTHER
ORDERED,
ADJUDGED,
AND
DECREED
that
Defendant
is
permanently
restrained
and
enjoined
from
violating
Section
17(a)
of
the
Securities
Act
of
1933
(the
"Securities
Act")
[15
U.S.C.
§ 77q(a)]
in
the
offer
or
sale
of
any
security
by
the
use
of
any
means
or
instruments
of
transportation
or
communication
in
interstate
commerce
or
by
use
of
the
mails,
directly
or
indirectly:
(a)
to
employ
any
device,
scheme,
or
artifice
to
defraud;
(b)
to
obtain
money
or
property
by
means
of
any
untrue
statement
of
a material
fact
or
any
omission
of
a material
fact
necessary
in
order
to
make
the
statements
made,
in
light
of
the
circumstances
under
which
they
were
made,
not
misleading;
or
(
c)
to
engage
in
any
transaction,
practice,
or
course
of
business
which
operates
or
would
operate
as
a fraud
or
deceit
upon
the
purchaser.
2

Case
1:16-cv-09829-PGG
Document
30-6
Filed
10/24/19

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
$168,721.39,
representing
benefits
obtained
as
a result
of
the
conduct
alleged
in
the
complaint
in
this
matter,
plus
prejudgment
interest
thereon
in
the
amount
of
$11,962.92
for
a total
of
$180,684.30.
Defendant's
$180,684.30
payment
obligation
is
deemed
satisfied
in
full
by
the
Orders
of
Restitution
and
Forfeiture entered
against
the
Defendant
in
United
States
v.
Kang,
et
al.,
Crim.
No.
l:16-cr-837
(S.D.N.Y.).
Based
on
the
conviction
imposed
in
United
States
v.
Kang,
et
al.,
the
Commission
has
determined
to
dismiss
its
claims
for
civil
monetary
penalties
against
Defendant.
This
Final
Judgment,
and
any
payments
made
hereto,
do
not
affect
the
disgorgement
obligations,
if
any,
of
any
other
parties
to
this
matter.
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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Filed
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V.
IT
IS
FURTHER
ORDERED,
ADJUDGED,
AND
DECREED
that,
for
purposes
of
exceptions
to
discharge
set
forth
in
Section
523
of
the
Bankruptcy
Code,
11
U.S.C.
§ 523,
the
allegations
in
the
complaint
are
true
and
admitted
by
Defendant,
and
further,
any
debt
for
disgorgment,
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).
VII.
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.
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UNITED
ST~TES
DISRICT
JUDGE
4

Case 1:16-cv-09829-PGG Document 30-6 Filed 10/24/19 Page 2 of 5 

UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF NEW YORK 

U.S. SECURITIES AND EXCHANGE 
COMMISSION, 

Plaintiff, 

v. 

DEBORAH D. KELLEY, 

Defendant. 

Case No. 16-cv-9829 

FINAL JUDGMENT AS TO DEFENDANT DEBORAH D. KELLEY 

The Securities and Exchange Commission having filed a Complaint and Deborah D. 

Kelley ("Defendant") having entered a general appearance; consented to the Court's jurisdiction 

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

waived findings of fact and conclusions of law; and waived any right to appeal from this Final 

Judgment: 

I. 

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

permanently restrained and enjoined from violating, directly or indirectly, Section lO(b) of the 

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

promulgated thereunder [17 C.F.R. § 240.l0b-5], by using any means or instrumentality of 

interstate commerce, or of the mails, or of any facility of any national securities exchange, in 

connection with the purchase or sale of any security: 

(a) to employ any device, scheme, or artifice to defraud; 

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Case 1:16-cv-09829-PGG Document 30-6 Filed 10/24/19 Page 3 of 5 

(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). 

IL 

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

is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 

(the "Securities Act") [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any 

means or instruments of transportation or communication in interstate commerce or by use of the 

mails, directly or indirectly: 

(a) to employ any device, scheme, or artifice to defraud; 

(b) to obtain money or property by means of any untrue statement of a material fact 

or any omission of a material fact necessary in order to make the statements 

made, in light of the circumstances under which they were made, not misleading; 

or 

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

would operate as a fraud or deceit upon the purchaser. 

2 

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Case 1:16-cv-09829-PGG Document 30-6 Filed 10/24/19 Page 4 of 5 

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 $168,721.39, representing benefits obtained as a result of the conduct 

alleged in the complaint in this matter, plus prejudgment interest thereon in the amount of 

$11,962.92 for a total of $180,684.30. Defendant's $180,684.30 payment obligation is deemed 

satisfied in full by the Orders of Restitution and Forfeiture entered against the Defendant in 

United States v. Kang, et al., Crim. No. l:16-cr-837 (S.D.N.Y.). Based on the conviction 

imposed in United States v. Kang, et al., the Commission has determined to dismiss its claims for 

civil monetary penalties against Defendant. This Final Judgment, and any payments made 

hereto, do not affect the disgorgement obligations, if any, of any other parties to this matter. 

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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Case 1:16-cv-09829-PGG Document 30-6 Filed 10/24/19 Page 5 of 5 

V. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, for purposes of 

exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, the 

allegations in the complaint are true and admitted by Defendant, and further, any debt for 

disgorgment, 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). 

VII. 

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. 

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1,,.,/l,,.!J AA ~I 
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UNITED ST~TES DISRICT JUDGE 

4 

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