Williams v. Janssen Research & Development LLC

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On June 21, 2016, the Court entered an Agreed Judgment against Defendant Ascenergy
LLC (“Ascenergy”), Defendant Joseph (a/k/a Joey) Gabaldon (“Gabaldon”), and Relief
Defendant Alanah Energy, LLC (“Alanah,” and collectively, “Defendants”).  ECF No. 63.  The
Agreed Judgment contemplates that a Final Judgment would subsequently be entered against
Defendants setting the amount of disgorgement, pre-judgment interest, and civil penalties.
Defendants have entered general appearances, consented to the Court’s jurisdiction over
them and the subject matter of this action, consented to entry of this Final Judgment without
admitting or denying the allegations of the Complaint (except as to jurisdiction and except as
otherwise provided herein in paragraph V); waived findings of fact and conclusions of law; and
waived any right to appeal from this Final Judgment:

UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
vs.
ASCENERGY LLC and
JOSEPH (a/k/a JOEY) GABALDON,
Defendants,
PYCKL LLC and ALANAH
ENERGY, LLC,
Relief Defendants.

Case No.:  2:15-cv-01974-GMN-PAL
AGREED FINAL JUDGMENT AS
TO DEFENDANT ASCENERGY
LLC, DEFENDANT JOSEPH (A/K/A
JOEY) GABALDON, AND RELIEF
DEFENDANT ALANAH
ENERGY, LLC

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I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant Ascenergy
and Defendant Gabaldon are 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
Ascenergy’s and/or Defendant Gabaldon’s officers, agents, servants, employees, and attorneys;
and (b) other persons in active concert or participation with Defendant Ascenergy and/or
Defendant Gabaldon or with anyone described in (a).
II.
 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
Ascenergy and Defendant Gabaldon are 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

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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.
 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
Ascenergy’s and/or Defendant Gabaldon’s officers, agents, servants, employees, and attorneys;
and (b) other persons in active concert or participation with Defendant Ascenergy and/or
Defendant Gabaldon or with anyone described in (a).
III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that:
Defendants Gabaldon and Defendant Ascenergy are jointly and severally liable for
disgorgement of $5,112,473, representing profits gained as a result of the conduct alleged in the
Complaint, together with prejudgment interest thereon in the amount of $197,217.
Relief Defendant Alanah is liable for disgorgement of $103,890, representing profits
gained as a result of the conduct alleged in the Complaint, together with prejudgment interest
thereon in the amount of $4,670.

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Defendant Gabaldon and Defendant Ascenergy shall have their disgorgement obligation
reduced by the amount of any disgorgement amounts that the Commission actually collects from
Relief Defendant Pyckl LLC or its owners, managers, members, or affiliates or from Relief
Defendant Alanah in this matter, including any amounts collected from escrow accounts
established on their behalf.  Defendant Gabaldon and Defendant Ascenergy shall also have their
disgorgement obligation reduced by and to the extent any amount of the approximately $517,278
of investor funds previously seized by the Federal Bureau of Investigation is finally forfeited or
released thereto.
Defendant Gabaldon is further liable for a civil penalty in the amount of $320,000
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 Ascenergy is further liable for a civil penalty in the amount of $1,550,000
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)].
Defendants shall satisfy these obligations by paying all amounts to the Securities and
Exchange Commission within 14 days after entry of this Final Judgment.  Any funds in the
accounts of Defendant Gabaldon, Defendant Ascenergy, or Relief Defendant Alanah subject to
the Court’s Asset Freeze [ECF No. 14] may be released towards payment of the obligations set
forth herein.
Defendants 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
.  Defendants may also pay by certified check, bank

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cashier’s check, or United States postal money order payable to the Securities and Exchange
Commission, which shall be delivered or mailed to
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; the respective Defendant’s name; and specifying that payment is made pursuant to
this Final Judgment.
Defendants shall simultaneously transmit photocopies of evidence of payment and case
identifying information to the Commission’s counsel in this action.  By making this payment,
Defendants relinquishes all legal and equitable right, title, and interest in such funds and no part
of the funds shall be returned to Defendants.
The Commission may enforce the Court’s judgment for disgorgement and prejudgment
interest by moving for civil contempt (and/or through other collection procedures authorized by
law) at any time after 14 days following entry of this Final Judgment.  Defendants shall pay post
judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961.
The Commission shall hold the funds (collectively, the “Fund”) and 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.  If the Commission staff determines that the Fund will not be distributed, the Commission
shall send the funds paid pursuant to this Final Judgment to the United States Treasury.
Regardless of whether any such Fair Fund distribution is made, amounts ordered to be
paid as civil penalties pursuant to this Final Judgment shall be treated as penalties paid to the
government for all purposes, including all tax purposes.  To preserve the deterrent effect of the

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civil penalty, Defendant Ascenergy and Defendant Gabaldon shall not, after offset or reduction
of any award of compensatory damages in any Related Investor Action based on their  payment
of disgorgement in this action, argue that they are entitled to, nor shall Defendant Ascenergy or
Defendant Gabaldon further benefit by, offset or reduction of such compensatory damages award
by the amount of any part of Defendant Ascenergy’s or Defendant Gabaldon’s payment of a civil
penalty in this action (“Penalty Offset”).  If the court in any Related Investor Action grants such
a Penalty Offset, the Defendant receiving the Penalty Offset 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 Final Judgment.  For
purposes of this paragraph, a “Related Investor Action” means a private damages action brought
against a Defendant by or on behalf of one or more investors based on substantially the same
facts as alleged in the Complaint in this action.
IV.
 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consents
Defendants executed in connection with this Final Judgment are incorporated herein with the
same force and effect as if fully set forth herein, and that Defendant Ascenergy, Defendant
Gabaldon, and Relief Defendant Alanah shall comply with all of the undertakings and
agreements set forth therein.
V.
 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

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allegations in the complaint are true and admitted by Defendant Gabaldon, and further, any debt
for disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant
Gabaldon 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 Gabaldon 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).
VI.
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.
VII.
There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil
Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.
IT IS SO ORDERED:
________________________________
Gloria M. Navarro, Chief Judge
United States District Judge
DATED this ___ day of May, 2017.

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On June 21, 2016, the Court entered an Agreed Judgment against Defendant Ascenergy 

LLC (“Ascenergy”), Defendant Joseph (a/k/a Joey) Gabaldon (“Gabaldon”), and Relief 

Defendant Alanah Energy, LLC (“Alanah,” and collectively, “Defendants”).  ECF No. 63.  The 

Agreed Judgment contemplates that a Final Judgment would subsequently be entered against 

Defendants setting the amount of disgorgement, pre-judgment interest, and civil penalties. 

Defendants have entered general appearances, consented to the Court’s jurisdiction over 

them and the subject matter of this action, consented to entry of this Final Judgment without 

admitting or denying the allegations of the Complaint (except as to jurisdiction and except as 

otherwise provided herein in paragraph V); waived findings of fact and conclusions of law; and 

waived any right to appeal from this Final Judgment: 

 

         
UNITED STATES DISTRICT COURT 

DISTRICT OF NEVADA 

 

SECURITIES AND EXCHANGE 
COMMISSION, 

Plaintiff, 

vs. 

ASCENERGY LLC and                                
JOSEPH (a/k/a JOEY) GABALDON, 

Defendants,  

PYCKL LLC and ALANAH  
ENERGY, LLC, 

Relief Defendants. 

 
 

Case No.:  2:15-cv-01974-GMN-PAL 

AGREED FINAL JUDGMENT AS 
TO DEFENDANT ASCENERGY 
LLC, DEFENDANT JOSEPH (A/K/A 
JOEY) GABALDON, AND RELIEF 
DEFENDANT ALANAH  
ENERGY, LLC  

 

   

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I. 

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

and Defendant Gabaldon are 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 

Ascenergy’s and/or Defendant Gabaldon’s officers, agents, servants, employees, and attorneys; 

and (b) other persons in active concert or participation with Defendant Ascenergy and/or 

Defendant Gabaldon or with anyone described in (a). 

II. 

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

Ascenergy and Defendant Gabaldon are 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 

Case 2:15-cv-01974-GMN-PAL   Document 84-2   Filed 05/22/17   Page 2 of 7Case 2:15-cv-01974-GMN-PAL   Document 85   Filed 05/23/17   Page 2 of 7



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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. 

 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 

Ascenergy’s and/or Defendant Gabaldon’s officers, agents, servants, employees, and attorneys; 

and (b) other persons in active concert or participation with Defendant Ascenergy and/or 

Defendant Gabaldon or with anyone described in (a). 

III. 

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

Defendants Gabaldon and Defendant Ascenergy are jointly and severally liable for 

disgorgement of $5,112,473, representing profits gained as a result of the conduct alleged in the 

Complaint, together with prejudgment interest thereon in the amount of $197,217.  

Relief Defendant Alanah is liable for disgorgement of $103,890, representing profits 

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

thereon in the amount of $4,670.  

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Defendant Gabaldon and Defendant Ascenergy shall have their disgorgement obligation 

reduced by the amount of any disgorgement amounts that the Commission actually collects from 

Relief Defendant Pyckl LLC or its owners, managers, members, or affiliates or from Relief 

Defendant Alanah in this matter, including any amounts collected from escrow accounts 

established on their behalf.  Defendant Gabaldon and Defendant Ascenergy shall also have their 

disgorgement obligation reduced by and to the extent any amount of the approximately $517,278 

of investor funds previously seized by the Federal Bureau of Investigation is finally forfeited or 

released thereto.   

Defendant Gabaldon is further liable for a civil penalty in the amount of $320,000 

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 Ascenergy is further liable for a civil penalty in the amount of $1,550,000 

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)]. 

Defendants shall satisfy these obligations by paying all amounts to the Securities and 

Exchange Commission within 14 days after entry of this Final Judgment.  Any funds in the 

accounts of Defendant Gabaldon, Defendant Ascenergy, or Relief Defendant Alanah subject to 

the Court’s Asset Freeze [ECF No. 14] may be released towards payment of the obligations set 

forth herein. 

Defendants 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.  Defendants may also pay by certified check, bank 

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cashier’s check, or United States postal money order payable to the Securities and Exchange 

Commission, which shall be delivered or mailed to  

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; the respective Defendant’s name; and specifying that payment is made pursuant to 

this Final Judgment.   

Defendants shall simultaneously transmit photocopies of evidence of payment and case 

identifying information to the Commission’s counsel in this action.  By making this payment, 

Defendants relinquishes all legal and equitable right, title, and interest in such funds and no part 

of the funds shall be returned to Defendants.   

The Commission may enforce the Court’s judgment for disgorgement and prejudgment 

interest by moving for civil contempt (and/or through other collection procedures authorized by 

law) at any time after 14 days following entry of this Final Judgment.  Defendants shall pay post 

judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961.       

The Commission shall hold the funds (collectively, the “Fund”) and 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.  If the Commission staff determines that the Fund will not be distributed, the Commission 

shall send the funds paid pursuant to this Final Judgment to the United States Treasury. 

Regardless of whether any such Fair Fund distribution is made, amounts ordered to be 

paid as civil penalties pursuant to this Final Judgment shall be treated as penalties paid to the 

government for all purposes, including all tax purposes.  To preserve the deterrent effect of the 

Case 2:15-cv-01974-GMN-PAL   Document 84-2   Filed 05/22/17   Page 5 of 7Case 2:15-cv-01974-GMN-PAL   Document 85   Filed 05/23/17   Page 5 of 7



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civil penalty, Defendant Ascenergy and Defendant Gabaldon shall not, after offset or reduction 

of any award of compensatory damages in any Related Investor Action based on their  payment 

of disgorgement in this action, argue that they are entitled to, nor shall Defendant Ascenergy or 

Defendant Gabaldon further benefit by, offset or reduction of such compensatory damages award 

by the amount of any part of Defendant Ascenergy’s or Defendant Gabaldon’s payment of a civil 

penalty in this action (“Penalty Offset”).  If the court in any Related Investor Action grants such 

a Penalty Offset, the Defendant receiving the Penalty Offset 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 Final Judgment.  For 

purposes of this paragraph, a “Related Investor Action” means a private damages action brought 

against a Defendant by or on behalf of one or more investors based on substantially the same 

facts as alleged in the Complaint in this action. 

IV. 

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

Defendants executed in connection with this Final Judgment are incorporated herein with the 

same force and effect as if fully set forth herein, and that Defendant Ascenergy, Defendant 

Gabaldon, and Relief Defendant Alanah shall comply with all of the undertakings and 

agreements set forth therein. 

V. 

 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 

Case 2:15-cv-01974-GMN-PAL   Document 84-2   Filed 05/22/17   Page 6 of 7Case 2:15-cv-01974-GMN-PAL   Document 85   Filed 05/23/17   Page 6 of 7



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

for disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant 

Gabaldon 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 Gabaldon 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). 

VI. 

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. 

VII. 

There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil 

Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. 

IT IS SO ORDERED: 

________________________________ 
Gloria M. Navarro, Chief Judge 
United States District Judge 

DATED this ___ day of May, 2017. 

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