SEC v. HOMELAND SAFETY INTERNATIONAL INC, No. 1:22-cv-03089, Northern District of Texas (Dec. 19, 2024)

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
HOMELAND SAFETY
INTERNATIONAL INC, et al.,

Defendants.
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Civil Action No. 3:08-cv-1197-O
FINAL JUDGMENT AS TO DEFENDANTS PETAR D. MIHAYLOV
AND YURI P. MARKOV
Plaintiff Securities and Exchange Commission having filed a Complaint and Defendant Petar
D. Mihaylov and Defendant Yuri P. Markov (collectively "Defendants") having entered a general
appearance; consented to the Court’s jurisdiction over Defendants and over 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 Defendants and
Defendants’ agents, servants, employees, attorneys, and all persons in active concert or participation
with them who receive actual notice of this Final Judgment by personal service or otherwise are
permanently restrained and enjoined from violating, directly or indirectly, Section10(b) of the
Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5
1

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.
II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants
and Defendants’ agents, servants, employees, attorneys, and all persons in active concert or
participation with them who receive actual notice of this Final Judgment by personal service or
otherwise are permanently restrained and enjoined from violating Section 17(a) of the Securities Act
of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of
any means or instruments of transportation or communication in interstate commerce or by use of
the mails, directly or indirectly:
(a)to employ any device, scheme, or artifice to defraud;
(b)to obtain money or property by means of any untrue statement of a material
fact or any omission of a material fact necessary in order to make the
statements made, in light of the circumstances under which they were made,
not misleading; or
2

(c)to engage in any transaction, practice, or course of business which operates
or would operate as a fraud or deceit upon the purchaser.
III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants
and Defendants’ agents, servants, employees, attorneys, and all persons in active concert or
participation with them who receive actual notice of this Final Judgment by personal service or
otherwise are 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
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
3

proceeding or examination under Section 8 of the Securities Act [15 U.S.C.
§ 77h].

IV.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants
are 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].
V.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants
are liable for disgorgement of $1,550,000, representing profits gained as a result of the conduct
alleged in the Complaint.  Defendants shall satisfy this obligation by paying $1,550,000 to the
Securities and Exchange Commission pursuant to the terms of the payment schedule set forth in
paragraph VI below after entry of this Final Judgment.  Defendants may transmit payment
electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions
upon request.  Payment may also be made directly from a bank account via Pay.gov through the SEC
website at http://www.sec.gov/about/offices/ofm.htm.  Defendants may also pay by certified check,
bank 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
4

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; identifying by name the Defendant making the payment; and specifying that payment is made
pursuant to this Final Judgment.
Defendants shall simultaneously transmit photocopies of evidence of payment and case
identifying information to the Commission's counsel in this action.  By making payment, Defendants
relinquish all legal and equitable right, title, and interest in such funds and no part of the funds shall
be returned to Defendants.
The Commission shall hold the funds (collectively, the "Fund") and may propose a plan to
distribute the Fund subject to the Court's approval.  The Court shall retain jurisdiction over the
administration of any distribution of the Fund.  If the Commission staff determines that the Fund will
not be distributed, the Commission shall send the funds paid pursuant to this Final Judgment to the
United States Treasury.
VI.
Defendants shall pay the total of disgorgement due of $1,550,000 to the Commission
according to the following schedule:  (1) Defendants shall pay $1,150,000, jointly and severally,
within 14 business days of entry of this Final Judgment; (2) Defendant Petar D. Mihaylov shall pay
$200,000, severally, within two years after entry of this Final Judgment.  (3) Defendant Yuri P.
Markov shall pay $200,000, severally, within two years after entry of this Final Judgment.  All
payments shall be deemed made on the date they are received by the Commission and shall be
applied first to any post-judgment interest, which begins to accrue pursuant to 28 U.S.C. § 1961
fourteen (14) business days after the entry of Final Judgment on any unpaid portion of the
5

$1,150,000 amount owing and two years after entry of Final Judgment on any unpaid portion of the
respective $200,000 amounts owing.
If either of the Defendants 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.
Thereafter, the Commission may enforce the Court's judgment for disgorgement and prejudgment
interest by moving for civil contempt (and/or through other collection procedures authorized by law).
VII.
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 Defendants
shall comply with all of the undertakings and agreements set forth therein.
VIII.
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.
IX.
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.
SO ORDERED on this 19th day of September, 2012.
6

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

SECURITIES AND EXCHANGE
COMMISSION,

Plaintiff,

v.

HOMELAND SAFETY
INTERNATIONAL INC, et al.,
 

Defendants.

§
§
§
§
§
§
§
§
§
§
§
§
§

Civil Action No. 3:08-cv-1197-O

FINAL JUDGMENT AS TO DEFENDANTS PETAR D. MIHAYLOV 
AND YURI P. MARKOV

Plaintiff Securities and Exchange Commission having filed a Complaint and Defendant Petar

D. Mihaylov and Defendant Yuri P. Markov (collectively "Defendants") having entered a general

appearance; consented to the Court’s jurisdiction over Defendants and over 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 Defendants and

Defendants’ agents, servants, employees, attorneys, and all persons in active concert or participation

with them who receive actual notice of this Final Judgment by personal service or otherwise are

permanently restrained and enjoined from violating, directly or indirectly, Section10(b) of the

Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5

1

Case 3:08-cv-01197-O   Document 92   Filed 09/19/12    Page 1 of 6   PageID 4051

camachol
Text Box
FW-02993-B



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.

II.

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

and Defendants’ agents, servants, employees, attorneys, and all persons in active concert or

participation with them who receive actual notice of this Final Judgment by personal service or

otherwise are permanently restrained and enjoined from violating Section 17(a) of the Securities Act

of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of

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

the mails, directly or indirectly:

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

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

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

statements made, in light of the circumstances under which they were made,

not misleading; or

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

or would operate as a fraud or deceit upon the purchaser.

III.

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

and Defendants’ agents, servants, employees, attorneys, and all persons in active concert or

participation with them who receive actual notice of this Final Judgment by personal service or

otherwise are 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

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

3

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proceeding or examination under Section 8 of the Securities Act [15 U.S.C.

§ 77h].

 

IV.

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

are 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].

V.

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

are liable for disgorgement of $1,550,000, representing profits gained as a result of the conduct

alleged in the Complaint.  Defendants shall satisfy this obligation by paying $1,550,000 to the

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

paragraph VI below after entry of this Final Judgment.  Defendants may transmit payment

electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions

upon request.  Payment may also be made directly from a bank account via Pay.gov through the SEC

website at http://www.sec.gov/about/offices/ofm.htm.  Defendants may also pay by certified check,

bank 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

4

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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; identifying by name the Defendant making the payment; and specifying that payment is made

pursuant to this Final Judgment.

Defendants shall simultaneously transmit photocopies of evidence of payment and case

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

relinquish all legal and equitable right, title, and interest in such funds and no part of the funds shall

be returned to Defendants.

The Commission shall hold the funds (collectively, the "Fund") and may propose a plan to

distribute the Fund subject to the Court's approval.  The Court shall retain jurisdiction over the

administration of any distribution of the Fund.  If the Commission staff determines that the Fund will

not be distributed, the Commission shall send the funds paid pursuant to this Final Judgment to the

United States Treasury.

VI.

Defendants shall pay the total of disgorgement due of $1,550,000 to the Commission

according to the following schedule:  (1) Defendants shall pay $1,150,000, jointly and severally,

within 14 business days of entry of this Final Judgment; (2) Defendant Petar D. Mihaylov shall pay

$200,000, severally, within two years after entry of this Final Judgment.  (3) Defendant Yuri P.

Markov shall pay $200,000, severally, within two years after entry of this Final Judgment.  All

payments shall be deemed made on the date they are received by the Commission and shall be

applied first to any post-judgment interest, which begins to accrue pursuant to 28 U.S.C. § 1961

fourteen (14) business days after the entry of Final Judgment on any unpaid portion of the

5

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$1,150,000 amount owing and two years after entry of Final Judgment on any unpaid portion of the

respective $200,000 amounts owing.    

If either of the Defendants 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. 

Thereafter, the Commission may enforce the Court's judgment for disgorgement and prejudgment

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

VII.

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 Defendants

shall comply with all of the undertakings and agreements set forth therein.

VIII.

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.

IX.

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.

SO ORDERED on this 19th day of September, 2012.

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OConnor
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