SEC v. Steve A. Smith, Jr.; and Xtreme Fighting Championships, Inc., No. 1:24-cv-24802, Southern District of Florida (Apr. 15, 2025) — Judgment

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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

CASE NO. 24-CV-24802-RAR

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,

v.

STEVE A. SMITH, JR., and
XTREME FIGHTING CHAMPIONSHIPS, INC.,

Defendants.
______________________________________________/

FINAL JUDGMENT AS TO DEFENDANT STEVE A. SMITH
THIS CAUSE comes before the Court on Plaintiff Securities and Exchange Commission’s
Unopposed Motion for Entry of Final Judgments Against Defendants (“Motion”), [ECF No. 16].
The Court having reviewed the Motion, the record, and being otherwise fully advised, it is hereby
ORDERED AND ADJUDGED that the Motion is GRANTED and Final Judgment as to
Defendant Steve A. Smith is hereby entered as follows:
The Securities and Exchange Commission having filed a Complaint and Defendant Steve
A.  Smith  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 without
admitting  or  denying  the  allegations  of  the  Complaint  (except  as  to  jurisdiction  and  except  as
otherwise provided herein in paragraph X); 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 10(b) of the

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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,
by, directly or indirectly, (i) creating a false appearance or otherwise deceiving any person about
the price or trading market for any security, or (ii) making any false or misleading statement, or
disseminating any false or misleading documents, materials, or information, concerning matters
relating  to  a  decision  by  an  investor  or  prospective  investor  to  buy  or  sell  securities  of  any
company.
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

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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,
by, directly or indirectly, (i) creating a false appearance or otherwise deceiving any person about
the price or trading market for any security, or (ii) making any false or misleading statement, or
disseminating any false or misleading documents, materials, or information, concerning matters
relating  to  a  decision  by  an  investor  or  prospective  investor  to  buy  or  sell  securities  of  any
company.
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   HEREBY FURTHER   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:

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(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 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).
IV.
IT  IS  FURTHER  ORDERED,  ADJUDGED,  AND DECREED that  pursuant  to
Sections 21(d)(1) and 21(d)(5) of the Exchange Act [15 U.S.C. §   78u(d)(1) and (5)], and Section
20(b)  of  the  Securities  Act  [15  U.S.C.  § 77t(b)],  Defendant  is  permanently  restrained  and

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enjoined from directly or indirectly participating in the issuance, purchase, offer, or sale of any
security, provided that such injunction shall not prevent Defendant from purchasing or selling
securities listed on a national exchange for his own personal accounts.
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 FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to Section
21(d)(2) of the Exchange Act [15 U.S.C. §   78u(d)(2)] and Section 20(e) of the Securities Act [15
U.S.C. § 77t(e)], Defendant is prohibited 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. § 78l]
or  that  is  required  to  file  reports  pursuant  to  Section  15(d)  of  the  Exchange  Act  [15  U.S.C.
§ 78o(d)].
VI.
IT   IS   HEREBY FURTHER   ORDERED,   ADJUDGED,   AND DECREED   that
Defendant is  permanently  barred  from  participating  in  an  offering  of  penny stock, including
engaging in activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing
or attempting to induce the purchase or sale of any penny stock.   A penny stock is any equity
security  that  has  a price of less than  five dollars,  except  as provided in Rule  3a51-1  under the
Exchange Act [17 C.F.R. 240.3a51-1].

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VII.
IT   IS   HEREBY FURTHER   ORDERED,   ADJUDGED,   AND DECREED   that
Defendant is liable on a joint and several basis with defendant Xtreme Fighting Championships,
Inc.  for  disgorgement  of  $436,000,  representing  net  profits  gained  as  a  result  of  the  conduct
alleged in the Complaint, together with prejudgment interest thereon in the amount of $97,509,
and that Defendant is individually liable for a civil penalty in the amount of $236,451 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 $769,960 to the
Securities and Exchange Commission pursuant to the terms of the payment schedule set forth in
paragraph VIII 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
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; Smith 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,

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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 Judgment 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.
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

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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.
VIII.
Defendant  shall  pay  the  total of  disgorgement,  prejudgment  interest,  and  penalty  due  of
$769,960  in  four  (4)  installment  payments  according  to  the  following  schedule:  (1)  $192,490
within 90 days after entry of this Final Judgment; (2) $192,490 within 180 days after entry of this
Final  Judgment;  (3)  $192,490  within  270  days  after  entry  of  this  Final  Judgment;  and  (4)  the
remaining balance within 364 days after 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.   Prior to making the final payment set forth herein, Defendant shall
contact the staff of the Commission 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 staff of the Commission without further application to the
Court.

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IX.
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.
X.
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).
XI.
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.
XII.
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.

DONE AND ORDERED in Miami, Florida, this 14th day of April, 2025.

_________________________________
RODOLFO A. RUIZ II
UNITED STATES DISTRICT JUDGE

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UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF FLORIDA 

 
CASE NO. 24-CV-24802-RAR 

 
SECURITIES AND EXCHANGE COMMISSION,  
 

Plaintiff, 
 
v. 
 
STEVE A. SMITH, JR., and  
XTREME FIGHTING CHAMPIONSHIPS, INC., 
 

Defendants. 
______________________________________________/ 
 

FINAL JUDGMENT AS TO DEFENDANT STEVE A. SMITH 

THIS CAUSE comes before the Court on Plaintiff Securities and Exchange Commission’s 

Unopposed Motion for Entry of Final Judgments Against Defendants (“Motion”), [ECF No. 16].  

The Court having reviewed the Motion, the record, and being otherwise fully advised, it is hereby 

ORDERED AND ADJUDGED that the Motion is GRANTED and Final Judgment as to 

Defendant Steve A. Smith is hereby entered as follows: 

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

A. Smith 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 without 

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

otherwise provided herein in paragraph X); 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 10(b) of the 

Case 1:24-cv-24802-RAR   Document 17   Entered on FLSD Docket 04/15/2025   Page 1 of 9



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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, 

by, directly or indirectly, (i) creating a false appearance or otherwise deceiving any person about 

the price or trading market for any security, or (ii) making any false or misleading statement, or 

disseminating any false or misleading documents, materials, or information, concerning matters 

relating to a decision by an investor or prospective investor to buy or sell securities of any 

company. 

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 

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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, 

by, directly or indirectly, (i) creating a false appearance or otherwise deceiving any person about 

the price or trading market for any security, or (ii) making any false or misleading statement, or 

disseminating any false or misleading documents, materials, or information, concerning matters 

relating to a decision by an investor or prospective investor to buy or sell securities of any 

company. 

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 HEREBY FURTHER 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: 

 

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(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 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). 

IV. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to 

Sections 21(d)(1) and 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(1) and (5)], and Section 

20(b) of the Securities Act [15 U.S.C. § 77t(b)], Defendant is permanently restrained and 

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enjoined from directly or indirectly participating in the issuance, purchase, offer, or sale of any 

security, provided that such injunction shall not prevent Defendant from purchasing or selling 

securities listed on a national exchange for his own personal accounts. 

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 FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to Section 

21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and Section 20(e) of the Securities Act [15 

U.S.C. § 77t(e)], Defendant is prohibited 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. § 78l] 

or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. 

§ 78o(d)]. 

VI. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendant is permanently barred from participating in an offering of penny stock, including 

engaging in activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing 

or attempting to induce the purchase or sale of any penny stock.  A penny stock is any equity 

security that has a price of less than five dollars, except as provided in Rule 3a51-1 under the 

Exchange Act [17 C.F.R. 240.3a51-1]. 

 

 

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VII. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendant is liable on a joint and several basis with defendant Xtreme Fighting Championships, 

Inc. for disgorgement of $436,000, representing net profits gained as a result of the conduct 

alleged in the Complaint, together with prejudgment interest thereon in the amount of $97,509, 

and that Defendant is individually liable for a civil penalty in the amount of $236,451 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 $769,960 to the 

Securities and Exchange Commission pursuant to the terms of the payment schedule set forth in 

paragraph VIII 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 

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; Smith 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, 

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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 Judgment 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. 

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 

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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. 

VIII. 

Defendant shall pay the total of disgorgement, prejudgment interest, and penalty due of 

$769,960 in four (4) installment payments according to the following schedule: (1) $192,490 

within 90 days after entry of this Final Judgment; (2) $192,490 within 180 days after entry of this 

Final Judgment; (3) $192,490 within 270 days after entry of this Final Judgment; and (4) the 

remaining balance within 364 days after 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.  Prior to making the final payment set forth herein, Defendant shall 

contact the staff of the Commission 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 staff of the Commission without further application to the 

Court. 

 

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IX. 

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. 

X. 

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). 

XI. 

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. 

XII. 

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. 

 

DONE AND ORDERED in Miami, Florida, this 14th day of April, 2025. 

 

_________________________________ 
RODOLFO A. RUIZ II 
UNITED STATES DISTRICT JUDGE 

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