SEC v. Joseph M. Laura; Anthony R. Sichenzio; and Walter Gil De Rubio, No. 1:18-cv-05075, Eastern District of New York (Feb. 5, 2025) — Judgment
raw: SEC v. JOSEPH M. LAURA
SEC v. JOSEPH M. LAURA, No. 1:18-cv-05075 (Feb. 5, 2025)
Joseph M. Laura was found liable for federal securities law violations and ordered to pay disgorgement, interest, and civil penalties following an SEC enforcement action.
The SEC obtained a judgment against defendant Joseph M. Laura for violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act. The court ordered Laura to pay disgorgement of ill-gotten gains, prejudgment interest dating back to June 1, 2013, and civil penalties. The specific monetary amounts for these sanctions are to be determined by the Court upon a motion by the Commission.
The Securities and Exchange Commission successfully pursued legal action against Joseph M. Laura for violations of federal securities laws, including fraud and unregistered broker-dealer activity. Specifically, the court found Laura liable for violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act. As part of the judgment, Laura is permanently enjoined from employing fraudulent schemes, making material omissions, or acting as an unregistered broker-dealer. The court also ordered the payment of disgorgement of ill-gotten gains and civil penalties, along with prejudgment interest calculated from June 1, 2013. While the exact financial totals are subject to a future motion by the Commission, the defendant has waived his right to appeal. This judgment follows a prior memorandum and order from June 28, 2023, which established liability for certain claims.
Extracted insights
- person Joseph M. Laura
- agency Securities and Exchange Commission
- Securities And Exchange Commission Filed a Complaint Against Joseph M. Laura, Anthony R. Sichenzio, and Walter Gil De Rubio
- Joseph M. Laura Entered a General Appearance In The Case
- Joseph M. Laura Consented To Jurisdiction By The Court Over The Subject Matter Of This Action
- Joseph M. Laura Was Found Liable By The Court In Its June 28, 2023 Memorandum And Order As To Certain Matters Alleged In The Complaint
- Joseph M. Laura Consented To Entry Of Judgment Without Admitting Or Denying The Allegations Of The Complaint
- Joseph M. Laura Waived All Findings Of Fact And Conclusions Of Law
- Joseph M. Laura Waived Any Right To Appeal From This Judgment
- The Court Ordered And Adjudged That Joseph M. Laura Is Permanently Restrained And Enjoined From Violating Section 10(b) Of The Securities Exchange Act Of 1934 And Rule 10b-5 Promulgated Thereunder
- The Court Ordered And Adjudged That The Foregoing Paragraph Also Binds Defendant’S Officers, Agents, Servants, Employees, And Attorneys Who Receive Actual Notice Of This Judgment
- The Court Ordered And Adjudged That The Foregoing Paragraph Also Binds Other Persons In Active Concert Or Participation With Defendant Or With Anyone Described In (a)
- The Court Ordered And Adjudged That Joseph M. Laura Is Permanently Restrained And Enjoined From Violating Section 17(a) Of The Securities Act In The Offer Or Sale Of Any Security
- The Court Ordered And Adjudged That The Foregoing Paragraph Also Binds Defendant’S Officers, Agents, Servants, Employees, And Attorneys Who Receive Actual Notice Of This Judgment
- The Court Ordered And Adjudged That The Foregoing Paragraph Also Binds Other Persons In Active Concert Or Participation With Defendant Or With Anyone Described In (a)
- The Court Ordered And Adjudged That Joseph M. Laura Is Permanently Restrained And Enjoined From Violating Section 15(a) Of The Exchange Act
1 UNITED STATES DISTRICT COURT E ASTERN DISTRICT OF NEW YORK SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 18-cv-5075 (HG)(VMS) v. JOSEPH M. LAURA, ANTHONY R. SICHENZIO, and WALTER GIL DE RUBIO, Defendants. J UDGMENT AS TO DEFENDANT JOSEPH M. LAURA The Securities and Exchange Commission having filed a Complaint and Defendant Joseph M. Laura (“Defendant” or “Laura”) having entered a general appearance; consented to the Court’s jurisdiction over Defendant and the subject matter of this action; been found liable by the Court in its June 28, 2023 Memorandum and Order (DE 170) as to certain matters alleged in the Complaint, specifically as to claim one for violations of Section 17(a)(2) of the Securities Act of 1933 (the “Securities Act”) and as to claim seven; consented to entry of this Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction and except as otherwise provided herein in paragraph VI); waived all findings of fact and conclusions of law; and waived any right to appeal from this 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 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 2 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 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 [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 3 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 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 permanently restrained and enjoined from violating, directly or indirectly, Section 15(a) of the Exchange Act [15 U.S.C. § 78o(a)], by using the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce or attempt to induce the purchase or sale of, any security unless Defendant is registered or is associated with a broker-dealer that is registered in accordance with Section 15(b) of the Exchange Act [15 U.S.C. § 78o(b)]. 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 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 Laura shall 4 pay disgorgement of ill-gotten gains, prejudgment interest thereon, and a civil penalty 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)]. The Court shall determine the amounts of the disgorgement and civil penalty upon motion of the Commission. Prejudgment interest shall be calculated from June 1, 2013, based on the rate of interest used by the Internal Revenue Service for the underpayment of federal income tax as set forth in 26 U.S.C. § 6621(a)(2). In connection with the Commission’s motion for disgorgement and/or civil penalties, and at any hearing held on such a motion: (a) Laura will be precluded from arguing that he did not violate the federal securities laws as alleged in the Complaint and found by the Court in its June 28, 2023 Memorandum and Order (DE 170); (b) Laura may not challenge the validity of the Consent or this Judgment; (c) solely for the purposes of such motion, the allegations of the Complaint shall be accepted as and deemed true by the Court; and (d) the Court may determine the issues raised in the motion on the basis of affidavits, declarations, excerpts of sworn deposition or investigative testimony, and documentary evidence, without regard to the standards for summary judgment contained in Rule 56(c) of the Federal Rules of Civil Procedure. In connection with the Commission’s motion for disgorgement and/or civil penalties, the parties may take discovery, including discovery from appropriate non-parties. V. 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. 1 UNITED STATES DISTRICT COURT E ASTERN DISTRICT OF NEW YORK SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 18-cv-5075 (HG)(VMS) v. JOSEPH M. LAURA, ANTHONY R. SICHENZIO, and WALTER GIL DE RUBIO, Defendants. J UDGMENT AS TO DEFENDANT ANTHONY R. SICHENZIO The Securities and Exchange Commission having filed a Complaint and Defendant Anthony R. Sichenzio (“Defendant” or “Sichenzio”) having entered a general appearance; consented to the Court’s jurisdiction over Defendant and the subject matter of this action; been found liable by the Court in its June 28, 2023 Memorandum and Order (DE 170) as to certain matters alleged in the Complaint, specifically as to claim five; consented to entry of this Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction and except as otherwise provided herein in paragraph V); waived all findings of fact and conclusions of law; and waived any right to appeal from this 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 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 2 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 Judgment by personal service or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a). II. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly: (a)to employ any device, scheme, or artifice to defraud; (b)to obtain money or property by means of any untrue statement of a material fact or any omission of a material fact necessary in order to make the statements 3 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 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 Sichenzio shall pay disgorgement of ill-gotten gains, prejudgment interest thereon, and a civil penalty 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)]. The Court shall determine the amounts of the disgorgement and civil penalty upon motion of the Commission. Prejudgment interest shall be calculated from June 1, 2013, based on the rate of interest used by the Internal Revenue Service for the underpayment of federal income tax as set forth in 26 U.S.C. § 6621(a)(2). In connection with the Commission’s motion for disgorgement and/or civil penalties, and at any hearing held on such a motion: (a) Sichenzio will be precluded from arguing that he did not violate the federal securities laws as alleged in the Complaint and found by the Court in its June 28, 2023 Memorandum and Order (DE 170); (b) Sichenzio may not challenge the validity of the Consent or this Judgment; (c) solely for the purposes of such motion, the allegations of the Complaint shall be accepted as and deemed true by the Court; and (d) the Court may determine the issues 4 raised in the motion on the basis of affidavits, declarations, excerpts of sworn deposition or investigative testimony, and documentary evidence, without regard to the standards for summary judgment contained in Rule 56(c) of the Federal Rules of Civil Procedure. In connection with the Commission’s motion for disgorgement and/or civil penalties, the parties may take discovery, including discovery from appropriate non-parties. 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. 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 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 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). 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 Judgment. VII. T here being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil 5 Procedure, the Clerk is ordered to enter this Judgment forthwith and without further notice. Dat ed: ______________, 2023 ____________________________________ HON. HECTOR GONZALEZ UNITED STATES DISTRICT JUDGE /s/ Hector Gonzalez August 22
1 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 18-cv-5075 (HG)(VMS) v. JOSEPH M. LAURA, ANTHONY R. SICHENZIO, and WALTER GIL DE RUBIO, Defendants. JUDGMENT AS TO DEFENDANT JOSEPH M. LAURA The Securities and Exchange Commission having filed a Complaint and Defendant Joseph M. Laura (“Defendant” or “Laura”) having entered a general appearance; consented to the Court’s jurisdiction over Defendant and the subject matter of this action; been found liable by the Court in its June 28, 2023 Memorandum and Order (DE 170) as to certain matters alleged in the Complaint, specifically as to claim one for violations of Section 17(a)(2) of the Securities Act of 1933 (the “Securities Act”) and as to claim seven; consented to entry of this Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction and except as otherwise provided herein in paragraph VI); waived all findings of fact and conclusions of law; and waived any right to appeal from this 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 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 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 1 of 22 PageID #: 10085 2 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 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 [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 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 2 of 22 PageID #: 10086 3 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 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 permanently restrained and enjoined from violating, directly or indirectly, Section 15(a) of the Exchange Act [15 U.S.C. § 78o(a)], by using the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce or attempt to induce the purchase or sale of, any security unless Defendant is registered or is associated with a broker-dealer that is registered in accordance with Section 15(b) of the Exchange Act [15 U.S.C. § 78o(b)]. 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 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 Laura shall Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 3 of 22 PageID #: 10087 4 pay disgorgement of ill-gotten gains, prejudgment interest thereon, and a civil penalty 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)]. The Court shall determine the amounts of the disgorgement and civil penalty upon motion of the Commission. Prejudgment interest shall be calculated from June 1, 2013, based on the rate of interest used by the Internal Revenue Service for the underpayment of federal income tax as set forth in 26 U.S.C. § 6621(a)(2). In connection with the Commission’s motion for disgorgement and/or civil penalties, and at any hearing held on such a motion: (a) Laura will be precluded from arguing that he did not violate the federal securities laws as alleged in the Complaint and found by the Court in its June 28, 2023 Memorandum and Order (DE 170); (b) Laura may not challenge the validity of the Consent or this Judgment; (c) solely for the purposes of such motion, the allegations of the Complaint shall be accepted as and deemed true by the Court; and (d) the Court may determine the issues raised in the motion on the basis of affidavits, declarations, excerpts of sworn deposition or investigative testimony, and documentary evidence, without regard to the standards for summary judgment contained in Rule 56(c) of the Federal Rules of Civil Procedure. In connection with the Commission’s motion for disgorgement and/or civil penalties, the parties may take discovery, including discovery from appropriate non-parties. V. 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. Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 4 of 22 PageID #: 10088 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 5 of 22 PageID #: 10089 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 6 of 22 PageID #: 10090 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 7 of 22 PageID #: 10091 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 8 of 22 PageID #: 10092 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 9 of 22 PageID #: 10093 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 10 of 22 PageID #: 10094 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 11 of 22 PageID #: 10095 1 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 18-cv-5075 (HG)(VMS) v. JOSEPH M. LAURA, ANTHONY R. SICHENZIO, and WALTER GIL DE RUBIO, Defendants. JUDGMENT AS TO DEFENDANT ANTHONY R. SICHENZIO The Securities and Exchange Commission having filed a Complaint and Defendant Anthony R. Sichenzio (“Defendant” or “Sichenzio”) having entered a general appearance; consented to the Court’s jurisdiction over Defendant and the subject matter of this action; been found liable by the Court in its June 28, 2023 Memorandum and Order (DE 170) as to certain matters alleged in the Complaint, specifically as to claim five; consented to entry of this Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction and except as otherwise provided herein in paragraph V); waived all findings of fact and conclusions of law; and waived any right to appeal from this 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 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 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 12 of 22 PageID #: 10096 2 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 Judgment by personal service or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a). II. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly: (a) to employ any device, scheme, or artifice to defraud; (b) to obtain money or property by means of any untrue statement of a material fact or any omission of a material fact necessary in order to make the statements Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 13 of 22 PageID #: 10097 3 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 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 Sichenzio shall pay disgorgement of ill-gotten gains, prejudgment interest thereon, and a civil penalty 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)]. The Court shall determine the amounts of the disgorgement and civil penalty upon motion of the Commission. Prejudgment interest shall be calculated from June 1, 2013, based on the rate of interest used by the Internal Revenue Service for the underpayment of federal income tax as set forth in 26 U.S.C. § 6621(a)(2). In connection with the Commission’s motion for disgorgement and/or civil penalties, and at any hearing held on such a motion: (a) Sichenzio will be precluded from arguing that he did not violate the federal securities laws as alleged in the Complaint and found by the Court in its June 28, 2023 Memorandum and Order (DE 170); (b) Sichenzio may not challenge the validity of the Consent or this Judgment; (c) solely for the purposes of such motion, the allegations of the Complaint shall be accepted as and deemed true by the Court; and (d) the Court may determine the issues Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 14 of 22 PageID #: 10098 4 raised in the motion on the basis of affidavits, declarations, excerpts of sworn deposition or investigative testimony, and documentary evidence, without regard to the standards for summary judgment contained in Rule 56(c) of the Federal Rules of Civil Procedure. In connection with the Commission’s motion for disgorgement and/or civil penalties, the parties may take discovery, including discovery from appropriate non-parties. 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. 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 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 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). 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 Judgment. VII. There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 15 of 22 PageID #: 10099 5 Procedure, the Clerk is ordered to enter this Judgment forthwith and without further notice. Dated: ______________, 2023 ____________________________________ HON. HECTOR GONZALEZ UNITED STATES DISTRICT JUDGE /s/ Hector Gonzalez August 22 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 16 of 22 PageID #: 10100 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 17 of 22 PageID #: 10101 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 18 of 22 PageID #: 10102 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 19 of 22 PageID #: 10103 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 20 of 22 PageID #: 10104 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 21 of 22 PageID #: 10105 Case 1:18-cv-05075-HG-VMS Document 175 Filed 08/22/23 Page 22 of 22 PageID #: 10106