2023-04-27 sec-litreleases judgment 160 KB 12,955 chars

SEC v. TRENDS INVESTMENTS INC.; BRANDON ROSSETTI; CLINTON GREYLING; LESLIE GREYLING; ROGER BENDELAC; and THOMAS CAPELLINI, No. 1:22-cv-10889, District of Massachusetts (Apr. 27, 2023) — Judgment

raw: SEC v. TRENDS INVESTMENTS INC.

SEC v. TRENDS INVESTMENTS INC., No. 1:22-cv-10889 (Apr. 27, 2023)

Caption
Securities and Exchange Commission v. Trends Investments Inc., et al.
summary

The SEC obtained a default judgment against Brandon Rossetti for securities fraud, resulting in a permanent injunction and a total payment of $1,416,884.

paragraph

The court entered a final judgment against Brandon Rossetti for violating Sections 17(a) of the Securities Act and Sections 10(b) and 15(a)(1) of the Exchange Act. Rossetti was ordered to pay a total of $1,416,884, which consists of $797,750 in disgorgement, $172,676 in prejudgment interest, and a $446,458 civil penalty. The judgment also imposes a permanent injunction against him for future violations of these securities laws.

narrative

The Securities and Exchange Commission (SEC) successfully obtained a default judgment against Brandon Rossetti following his failure to respond to a complaint filed in the District of Massachusetts. The court found that Rossetti violated Sections 17(a) of the Securities Act and Sections 10(b) and 15(a)(1) of the Exchange Act, including Rule 10b-5, through fraudulent schemes and material misstatements. As a result of the judgment, Rossetti is permanently enjoined from engaging in further fraudulent securities transactions. He is ordered to pay a total of $1,416,884, broken down into $797,750 in disgorgement, $172,676 in prejudgment interest, and a $446,458 civil penalty. The court's order also binds his agents and employees to the terms of the permanent injunction. This resolution follows a period of service by publication and email after Rossetti failed to appear in court.

Enriched metadata

Scheme
financial-fraud (95%)
Court
District of Massachusetts
Case No.
1:22-cv-10889
Disgorgement
$797,750
Civil penalty
$446,458
Classified financial-fraud(confidence 95%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 67% / precision 23%. detection rule →
Statutes
15 U.S.C. § 77q(a)15 U.S.C. § 78j(b)15 U.S.C. §78o(a)15 U.S.C. §78o(b)28 U.S.C. §300128 U.S.C. §196111 U.S.C. §52311 U.S.C. §523(a)17 C.F.R. § 240.10b-517 C.F.R. 240.3a51-1Sections 20(d) and 22(a) of the Securities ActSections 20(d) and 22(a) of the Securities ActSections 21(d), 21(e) and 27 of the Securities Exchange ActSections 21(d), 21(e) and 27 of the Securities Exchange ActSections 21(d), 21(e) and 27 of the Securities Exchange ActSections 17(a) of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionTRENDS INVESTMENTS INC.BRANDON ROSSETTICLINTON GREYLINGLESLIE GREYLINGROGER BENDELACTHOMAS CAPELLINI
Keywords
rossetticommissionordered adjudgedadjudged decreedfurther orderedcivilactiondocument pagefurtherorderorderedshallexchangesecuritiessecurities exchange

Extracted insights

Dollar amounts 5
  • $1.42M $1,416,884 $1M–$10M
  • $1.42M $1,416,884 $1M–$10M
  • $798K $797,750 $100K–$1M
  • $446K $446,458 $100K–$1M
  • $173K $172,676 $100K–$1M
Entities 4
  • person action against brandon rossetti
  • person brandon rossetti
  • person portland press herald
  • agency Securities and Exchange Commission
Triples 7
  • Securities And Exchange Commission commenced action against Brandon Rossetti
  • Securities And Exchange Commission served Brandon Rossetti by email with order, summons, complaint, and legal notice
  • Brandon Rossetti has not filed answer or notice of appearance
  • Securities And Exchange Commission filed request for entry of default as to Brandon Rossetti on March 9, 2023
  • Securities And Exchange Commission applied for entry of final judgment based on Brandon Rossetti’s failure to answer
  • Brandon Rossetti is restrained and enjoined from violating Section 17(a) of the Securities Act
  • Portland Press Herald published notice of case on September 10, 2022
Text layers
Extracted body text (12,955c)
1
UNITED STATES DISTRICT COURT
DISTRI
CT OF MASSACHUSETTS
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
            v.
TRENDS INVESTMENTS INC.,
BRANDON ROSSETTI, CLINTON
GREYLING, LESLIE GREYLING,
ROGER BENDELAC, and THOMAS
CAPELLINI
Defendants.
Civil Action No. 22-CV-10889-
RGS
FINAL JUDGMENT AS TO DEFENDANT BRANDON ROSSETTI
WHEREAS, on June 8, 2023, the plaintiff Securities and Exchange Commission
(“Commission”) commenced this action by filing a Complaint against defendant Brandon
R
ossetti (“Rossetti” or “Defendant”) and others;
WHEREAS, on August 29, 2022, pursuant to the Commission’s motion, the Court issued
an order authorizing service upon Rossetti by publication in the
Portland Press Herald for three
consecutive weeks and emailing the summons and complaint to Rossetti’s last known email
addresses.  (Dkt. No. 27 (Order for Service by Publication and Email).)  The order also extended
the time for completion of service until No
vember 7, 2022 and provided Rossetti thirty-five (35)
d
ays after the first notice was published to answer the complaint or file responsive pleadings.
(Id.)
WHEREAS, on September 12, 2022, the Commission served Rossetti by email with the
Court’s order, the summons, the complaint, and a link to the legal notice.  (Dkt. No. 42 ¶ 4
(Declaration of Service).)  Further, on September
 10, 17, and 24, 2022, the Portland Press

2

Herald published notice of this case.  (See id. ¶ 3; Ex. A (copies of notices); Ex. B (Declaration
of Publication).)
WHEREAS, the first legal notice was published on September 10, 2022, and the thirty-
five (35) day period ordered by the Court for Rossetti to file an answer or responsive pleadings
fell on Saturday, October 15, 2022.  (See id. ¶ 3.)  Accordingly Rossetti’s answer was due on
Monday, October 17, 2022.  (See id.)  Rossetti has not filed an answer or a notice of appearance,
and no counsel has appeared on Rossetti’s behalf or contacted the undersigned on Rossetti’s
behalf.
  WHEREAS, the Commission filed a request for entry of default as to Rossetti on March
9, 2023, for failure to answer or otherwise appear.  See Dkt. No. 98;
WHEREAS, in accordance with Fed. R. Civ. P. 55(a), a clerk’s Notice of Default was
entered against Rossetti on March 10, 2023.  See Dkt. No. 102;
WHEREAS, the court accepts as true the factual allegations of the Complaint against
defendant Rossetti, who has defaulted, and finds that the court has jurisdiction over this action
pursuant to Sections 20(d) and 22(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C.
§§77t(d), 77v(a)], and Sections 21(d), 21(e) and 27 of the Securities Exchange Act of 1934
(“Exchange Act”) [15 U.S.C. §§78u(d), 78u(e), 78aa];
WHEREAS, the Commission has applied, pursuant to Fed. R. Civ. P. 55(b)(2), for the
entry of this Final Judgment based on defendant Rossetti’s failure to answer or otherwise
respond to the Commission’s Complaint, and the court having considered the prima facie case
for relief shown by the Commission’s Complaint, the memorandum of law in support of the
Commission’s motion for default judgment, and the supporting Declaration of Ryan Murphy,
which showing has not been rebutted by defendant Rossetti, the Court finds that Rossetti has

3

violated Sections  17(a) of the Securities Act and Sections 10(b) and 15(a)(1) of the Exchange
Act and Rule 10b-5 thereunder;
NOW THEREFORE, BASED ON THE FOREGOING:
I.
 IT IS HEREBY 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
 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).

4

II.
 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the
Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R.
§ 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or
of any facility of any national securities exchange, in connection with the purchase or sale of any
security:
(a) to employ any device, scheme, or artifice to defraud;
(b) to make any untrue statement of a material fact or to omit to state a material fact
 necessary in order to make the statements made, in the light of the circumstances
 under which they were made, not misleading; or
(c) to engage in any act, practice, or course of business which operates or would
 operate as a fraud or deceit upon any person.
 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this 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 15(a)(1) of the Exchange Act [15
U.S.C. §78o(a)] by, directly or indirectly, using the mails or any means or instrumentality of
interstate commerce to effect any transactions in, or to induce or attempt to induce the purchase

5

or sale of, any security (with certain exemptions not applicable here), unless he is associated with
a broker or 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 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].
V.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
Rossetti is liable for disgorgement of $797,750, representing net profits gained as a result of the
conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of
$172,676.  Defendant Rossetti is liable for a civil penalty in the amount of $446,458. Defendant
Rossetti is liable for a total of $1,416,884.  Defendant Rossetti shall satisfy this obligation by
paying $1,416,884 to the Securities and Exchange Commission within 30 days after entry of this
Final Judgment.

6

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; Brandon Rossetti 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
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

7

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
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.

8
VI.
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 Bandon Rossetti 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).
VII.
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.
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.
Dated:  ______________, 2023
____________________________________
UNITED STATES DISTRICT JUDGE

/s/ Richard G. Stearns
April 25
OCR text (13,896c · tika · 95% conf)
1 

UNITED STATES DISTRICT COURT 
DISTRICT OF MASSACHUSETTS 

SECURITIES AND EXCHANGE 
COMMISSION, 

Plaintiff, 
 v. 

TRENDS INVESTMENTS INC., 
BRANDON ROSSETTI, CLINTON 
GREYLING, LESLIE GREYLING, 
ROGER BENDELAC, and THOMAS 
CAPELLINI 

Defendants. 

Civil Action No. 22-CV-10889-
RGS 

FINAL JUDGMENT AS TO DEFENDANT BRANDON ROSSETTI

WHEREAS, on June 8, 2023, the plaintiff Securities and Exchange Commission 

(“Commission”) commenced this action by filing a Complaint against defendant Brandon 

Rossetti (“Rossetti” or “Defendant”) and others; 

WHEREAS, on August 29, 2022, pursuant to the Commission’s motion, the Court issued 

an order authorizing service upon Rossetti by publication in the Portland Press Herald for three 

consecutive weeks and emailing the summons and complaint to Rossetti’s last known email 

addresses.  (Dkt. No. 27 (Order for Service by Publication and Email).)  The order also extended 

the time for completion of service until November 7, 2022 and provided Rossetti thirty-five (35) 

days after the first notice was published to answer the complaint or file responsive pleadings. 

(Id.)   

WHEREAS, on September 12, 2022, the Commission served Rossetti by email with the 

Court’s order, the summons, the complaint, and a link to the legal notice.  (Dkt. No. 42 ¶ 4 

(Declaration of Service).)  Further, on September 10, 17, and 24, 2022, the Portland Press 

Case 1:22-cv-10889-RGS   Document 126   Filed 04/25/23   Page 1 of 8



2 
 

Herald published notice of this case.  (See id. ¶ 3; Ex. A (copies of notices); Ex. B (Declaration 

of Publication).)  

WHEREAS, the first legal notice was published on September 10, 2022, and the thirty-

five (35) day period ordered by the Court for Rossetti to file an answer or responsive pleadings 

fell on Saturday, October 15, 2022.  (See id. ¶ 3.)  Accordingly Rossetti’s answer was due on 

Monday, October 17, 2022.  (See id.)  Rossetti has not filed an answer or a notice of appearance, 

and no counsel has appeared on Rossetti’s behalf or contacted the undersigned on Rossetti’s 

behalf. 

  WHEREAS, the Commission filed a request for entry of default as to Rossetti on March 

9, 2023, for failure to answer or otherwise appear.  See Dkt. No. 98; 

WHEREAS, in accordance with Fed. R. Civ. P. 55(a), a clerk’s Notice of Default was 

entered against Rossetti on March 10, 2023.  See Dkt. No. 102; 

WHEREAS, the court accepts as true the factual allegations of the Complaint against 

defendant Rossetti, who has defaulted, and finds that the court has jurisdiction over this action 

pursuant to Sections 20(d) and 22(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. 

§§77t(d), 77v(a)], and Sections 21(d), 21(e) and 27 of the Securities Exchange Act of 1934 

(“Exchange Act”) [15 U.S.C. §§78u(d), 78u(e), 78aa]; 

WHEREAS, the Commission has applied, pursuant to Fed. R. Civ. P. 55(b)(2), for the 

entry of this Final Judgment based on defendant Rossetti’s failure to answer or otherwise 

respond to the Commission’s Complaint, and the court having considered the prima facie case 

for relief shown by the Commission’s Complaint, the memorandum of law in support of the 

Commission’s motion for default judgment, and the supporting Declaration of Ryan Murphy, 

which showing has not been rebutted by defendant Rossetti, the Court finds that Rossetti has 

Case 1:22-cv-10889-RGS   Document 126   Filed 04/25/23   Page 2 of 8



3 
 

violated Sections  17(a) of the Securities Act and Sections 10(b) and 15(a)(1) of the Exchange 

Act and Rule 10b-5 thereunder; 

NOW THEREFORE, BASED ON THE FOREGOING: 

I. 

 IT IS HEREBY 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 

 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). 

 

 

Case 1:22-cv-10889-RGS   Document 126   Filed 04/25/23   Page 3 of 8



4 
 

II. 

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

is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the 

Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. 

§ 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or 

of any facility of any national securities exchange, in connection with the purchase or sale of any 

security: 

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

(b) to make any untrue statement of a material fact or to omit to state a material fact 

 necessary in order to make the statements made, in the light of the circumstances 

 under which they were made, not misleading; or 

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

 operate as a fraud or deceit upon any person. 

 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in 

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 

receive actual notice of this 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 15(a)(1) of the Exchange Act [15 

U.S.C. §78o(a)] by, directly or indirectly, using the mails or any means or instrumentality of 

interstate commerce to effect any transactions in, or to induce or attempt to induce the purchase 

Case 1:22-cv-10889-RGS   Document 126   Filed 04/25/23   Page 4 of 8



5 
 

or sale of, any security (with certain exemptions not applicable here), unless he is associated with 

a broker or 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 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]. 

V. 

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

Rossetti is liable for disgorgement of $797,750, representing net profits gained as a result of the 

conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of 

$172,676.  Defendant Rossetti is liable for a civil penalty in the amount of $446,458. Defendant 

Rossetti is liable for a total of $1,416,884.  Defendant Rossetti shall satisfy this obligation by 

paying $1,416,884 to the Securities and Exchange Commission within 30 days after entry of this 

Final Judgment. 

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6 
 

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; Brandon Rossetti 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 

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 

Case 1:22-cv-10889-RGS   Document 126   Filed 04/25/23   Page 6 of 8



7 
 

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 

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.   

 

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8 

VI. 

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 Bandon Rossetti 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). 

VII. 

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. 

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. 

Dated:  ______________, 2023 

____________________________________ 
UNITED STATES DISTRICT JUDGE 
/s/ Richard G. Stearns

April 25

Case 1:22-cv-10889-RGS   Document 126   Filed 04/25/23   Page 8 of 8