2025-04-15 sec-litreleases judgment 184 KB 13,534 chars

SEC v. STEVE A. SMITH, JR.; and XTREME FIGHTING CHAMPIONSHIPS, INC., No. 1:24-cv-24802, Southern District of Florida (Apr. 15, 2025) — Judgment

raw: SEC v. STEVE A. SMITH

SEC v. STEVE A. SMITH, No. 1:24-cv-24802 (Apr. 15, 2025)

Caption
Securities and Exchange Commission v. Smith
summary

Xtreme Fighting Championships, Inc. entered a final judgment with the SEC to resolve allegations of securities fraud and unregistered securities offerings.

paragraph

The SEC obtained a final judgment against Xtreme Fighting Championships, Inc. for violations of the Securities Act and Exchange Act involving deceptive trading practices. The defendant is liable for $436,000 in disgorgement and $97,509 in prejudgment interest. The court also imposed a $436,000 civil penalty, bringing the total judgment to $969,509.

narrative

The Securities and Exchange Commission (SEC) secured a final judgment against Xtreme Fighting Championships, Inc. and Steve A. Smith, Jr. for alleged securities fraud. The defendants were accused of employing schemes to defraud investors by creating false appearances regarding security prices and disseminating misleading information. While the company consented to the judgment without admitting or denying the allegations, it is now subject to a permanent injunction against future violations of the Securities Act and Exchange Act. The financial terms of the judgment include $436,000 in disgorgement, $97,509 in prejudgment interest, and a $436,000 civil penalty. This total amount of $969,509 is to be paid in four installments over 364 days. The court's order also prohibits the defendant from engaging in the unregistered sale of securities.

Enriched metadata

Scheme
unregistered-securities (95%)
Court
Southern District of Florida
Case No.
1:24-cv-24802
Outcome
settled
Disgorgement
$969,509
Civil penalty
$436,000
Classified unregistered-securities(confidence 95%). EDGAR detection: forms Form D/S-1· recall 41% / precision 30%. detection rule →
Statutes
15 U.S.C. § 78j(b)15 U.S.C. § 77q(a)15 U.S.C. § 77e15 U.S.C. § 77h15 U.S.C. § 77t(d)15 U.S.C. § 78u(d)28 U.S.C. § 300128 U.S.C. § 196117 C.F.R. § 240.10b-5Section 17(a) of the Securities ActSection 5 of the Securities ActSection 8 of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionSteve A. Smith, Jr.Xtreme Fighting Championships, Inc.
Keywords
finalentry finalordered adjudgedshallcommissionadjudged decreedsecuritiessecurities exchangedocument enteredentered flsdflsd docketdocket pagefurther orderedorderedaction

Extracted insights

Dollar amounts 8
  • $970K $969,509 $100K–$1M
  • $970K $969,509 $100K–$1M
  • $436K $436,000 $100K–$1M
  • $436K $436,000 $100K–$1M
  • $242K $242,377 $100K–$1M
  • $242K $242,377 $100K–$1M
  • $242K $242,377 $100K–$1M
  • $98K $97,509 $10K–$100K
Entities 7
  • organization Court
  • person final judgment
  • person general appearance
  • agency Securities and Exchange Commission
  • organization Securities and Exchange Commission
  • company xtreme fighting championships, inc.
  • organization Xtreme Fighting Championships, Inc.
Triples 8
  • Securities And Exchange Commission filed Complaint
  • Xtreme Fighting Championships, Inc. entered general appearance
  • Securities And Exchange Commission granted Motion
  • Court ordered Final Judgment
  • Xtreme Fighting Championships, Inc. restrained violating Section 10(b)
  • Xtreme Fighting Championships, Inc. enjoined violating Section 17(a)
  • Defendant's officers bound Final Judgment
  • Securities And Exchange Commission sued Xtreme Fighting Championships, Inc.
Text layers
Extracted body text (13,534c)
1

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
XTREME FIGHTING CHAMPIONSHIPS, INC.

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 Xtreme Fighting Championships, Inc. is hereby entered as follows:
The  Securities  and  Exchange  Commission  having  filed  a  Complaint  and  Defendant
Xtreme  Fighting  Championships,  Inc.  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);  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

2

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

3

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:
(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

4

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   HEREBY FURTHER   ORDERED,   ADJUDGED,   AND DECREED   that
Defendant  is  liable  on  a  joint  and  several  basis with  Defendant  Steve  A.  Smith,  Jr.     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 $436,000 pursuant to Section

5

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 $969,509 to the Securities
and Exchange Commission pursuant to the terms of the payment schedule set forth in paragraph
V 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; Xtreme Fighting Championships, Inc. 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,
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

6

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  it  is  entitled  to,  nor  shall  it  further  benefit  by,  offset  or  reduction  of  such
compensatory  damages  award  by  the  amount  of  any  part  of  Defendant’s  payment  of  a  civil
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

7

“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.
V.
Defendant  shall  pay  the  total of  disgorgement, prejudgment  interest,  and  penalty due  of
$969,509  in  four  (4)  installment  payments  according  to  the  following  schedule:  (1)  $242,377
within 90 days after entry of this Final Judgment; (2) $242,377 within 180 days after entry of this
Final Judgment;  (3)  $242,377  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.
VI.
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.
VII.
IT  IS  FURTHER ORDERED,  ADJUDGED,  AND DECREED that  this  Court  shall

8

retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.
VIII.
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
OCR text (14,011c · tika · 95% conf)
1  

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  
XTREME FIGHTING CHAMPIONSHIPS, INC. 

 
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 Xtreme Fighting Championships, Inc. is hereby entered as follows: 

The Securities and Exchange Commission having filed a Complaint and Defendant 

Xtreme Fighting Championships, Inc. 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); 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 18   Entered on FLSD Docket 04/15/2025   Page 1 of 8



2  

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 

Case 1:24-cv-24802-RAR   Document 18   Entered on FLSD Docket 04/15/2025   Page 2 of 8



3  

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: 

(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 

Case 1:24-cv-24802-RAR   Document 18   Entered on FLSD Docket 04/15/2025   Page 3 of 8



4  

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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendant is liable on a joint and several basis with Defendant Steve A. Smith, Jr. 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 $436,000 pursuant to Section 

Case 1:24-cv-24802-RAR   Document 18   Entered on FLSD Docket 04/15/2025   Page 4 of 8



5  

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 $969,509 to the Securities 

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

V 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; Xtreme Fighting Championships, Inc. 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, 

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 

Case 1:24-cv-24802-RAR   Document 18   Entered on FLSD Docket 04/15/2025   Page 5 of 8



6  

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 it is entitled to, nor shall it further benefit by, offset or reduction of such 

compensatory damages award by the amount of any part of Defendant’s payment of a civil 

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 

Case 1:24-cv-24802-RAR   Document 18   Entered on FLSD Docket 04/15/2025   Page 6 of 8



7  

“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. 

V. 

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

$969,509 in four (4) installment payments according to the following schedule: (1) $242,377 

within 90 days after entry of this Final Judgment; (2) $242,377 within 180 days after entry of this 

Final Judgment; (3) $242,377 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. 

VI. 

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. 

VII. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall 

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retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. 

VIII. 

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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