SEC v. JOHN BARKSDALE; and JONATINA L. BARKSDALE, No. 1:22-cv-01933, Southern District of New York (Mar. 30, 2023) — Judgment

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
SECURITIES AND EXCHANGE
COMMISSION,
V.
Plaintiff,
JOHN BARKSDALE, and JONA TINA
L.
BARKSDALE,
Defendants
Case No. 1 :22-cv-1933 (LAK)
[PROPOSEDt FINAL JUDGMENT AS TO DEFENDANTS
JOHN BARKSDALE AND JONATINA
L. BARKSDALE
WHEREAS, the Clerk of Court entered a  Clerk's Certificate of Default (Dkt No 22)
against Defendants John Barksdale and Jonatina
L. Barksdale ("Defendants") on August 18, 2022,
and WHEREAS, the Court has reviewed Plaintiff Securities and Exchange Commission's Motion
for a Default Judgment against Defendants, all supporting documents, and any opposition thereto,
the Court finds the motion is  well taken and should be granted, and orders as follows:
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants are
permanently restrained and enjoined from violating, directly or indirectly,  Section 1 0(b) of the
Exchange Act
[15 U,S C § 78j(b)] and Rule 1 0b-5 promulgated thereunder [17 C F R § 240 j Ob-
.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
Ru]e of Cjyj] 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) Defendants' officers,
agents, servants, employees, and attorneys; and (b) other persons in active concert or participation
with Defendants or with anyone described in (a).
II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants
are 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
2

Ru]e of CjyjJ 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) Defendants' officers,
agents, servants, employees, and attorneys; and (b) other persons in active concert or participation
with Defendants or with anyone described in (a).
III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants
are permanently restrained and enjoined from violating Section 5
of the Securities Act [) 5 lJ S C
§...11.e] 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
proceeding or examination under Section 8 of the Securities Act[) 5 lJ SC §
3

11h].
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal
Rule of CjyiJ 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) Defendants' officers,
agents, servants, employees,
and attorneys; and (b) other persons in active concert or participation
with Defendants
or with anyone described in (a).
IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants are jointly
and severally liable for disgorgement in the amount
of $46,297,463, representing profits gained as a
result
of the conduct alleged in the Complaint and as supported by the additional disgorgement evidence
proffered by the Commission in its Motion for Default Judgment, together with prejudgment interest
thereon in the amount
of $10,044,822, for a total of $56,342,285, and each shall also individually pay
a  civil penalty in the
amount of $23,148,731, pursuant to Section 20(d) of the Securities Act [.Ll.
U S C § 77t(d)]. Defendants shall satisfy these obligations by making payment to the Securities
and Exchange
Commission within 30 days 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
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
4

and shall be accompanied by a  letter identifying the case title,  civil action number,  and name of
this Court; [Defendants' names] as a defendants in this action; 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 this 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 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 l J S C § 300) 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
5

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,
Defendants shall not, after offset
or reduction of any award of compensatory damages in any
Related Investor Action based
on Defendants' payment of disgorgement in this action, argue that
they are entitled to,
nor shall they further benefit by, offset or reduction of such compensatory
damages award
by the amount of any part of Defendants' payment of a civil penalty in this action
("Penalty Offset").
If the court in any Related Investor Action grants such a  Penalty Offset,
Defendants 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 Defendants
by or on behalf of one or more investors based on
substantially the same facts as alleged in the Complaint in this action.
V.
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.
Dated:
___ __..7--1..jlj,C,Q,;'£ __ , 2023
(
Lewis A. Kaplan
UNITED STA TES DISTRICT
JUDGE
6

Case 1:22-cv-01933-LAK Document 26-3 Filed 03/07/23 Page 2 of 7 

UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF NEW YORK 

SECURITIES AND EXCHANGE 
COMMISSION, 

V. 

Plaintiff, 

JOHN BARKSDALE, and JONA TINA L. 
BARKSDALE, 

Defendants 

Case No. 1 :22-cv-1933 (LAK) 

[PROPOSEDt FINAL JUDGMENT AS TO DEFENDANTS 
JOHN BARKSDALE AND JONATINA L. BARKSDALE 

WHEREAS, the Clerk of Court entered a Clerk's Certificate of Default (Dkt No 22) 

against Defendants John Barksdale and Jonatina L. Barksdale ("Defendants") on August 18, 2022, 

and WHEREAS, the Court has reviewed Plaintiff Securities and Exchange Commission's Motion 

for a Default Judgment against Defendants, all supporting documents, and any opposition thereto, 

the Court finds the motion is well taken and should be granted, and orders as follows: 

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

permanently restrained and enjoined from violating, directly or indirectly, Section 1 0(b) of the 

Exchange Act [15 U,S C § 78j(b)] and Rule 1 0b-5 promulgated thereunder [17 C F R § 240 j Ob-

.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 

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Case 1:22-cv-01933-LAK Document 26-3 Filed 03/07/23 Page 3 of 7 

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 

Ru]e of Cjyj] 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) Defendants' officers, 

agents, servants, employees, and attorneys; and (b) other persons in active concert or participation 

with Defendants or with anyone described in (a). 

II. 

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

are 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 

2 

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Case 1:22-cv-01933-LAK Document 26-3 Filed 03/07/23 Page 4 of 7 

Ru]e of CjyjJ 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) Defendants' officers, 

agents, servants, employees, and attorneys; and (b) other persons in active concert or participation 

with Defendants or with anyone described in (a). 

III. 

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

are permanently restrained and enjoined from violating Section 5 of the Securities Act [) 5 lJ S C 

§...11.e] 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 

proceeding or examination under Section 8 of the Securities Act[) 5 lJ SC § 

3 

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Case 1:22-cv-01933-LAK Document 26-3 Filed 03/07/23 Page 5 of 7 

11h]. 

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

Rule of CjyiJ 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) Defendants' officers, 

agents, servants, employees, and attorneys; and (b) other persons in active concert or participation 

with Defendants or with anyone described in (a). 

IV. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendants are jointly 

and severally liable for disgorgement in the amount of $46,297,463 , representing profits gained as a 

result of the conduct alleged in the Complaint and as supported by the additional disgorgement evidence 

proffered by the Commission in its Motion for Default Judgment, together with prejudgment interest 

thereon in the amount of $10,044,822, for a total of $56,342,285, and each shall also individually pay 

a civil penalty in the amount of $23,148,731, pursuant to Section 20(d) of the Securities Act [.Ll. 

U S C § 77t(d)]. Defendants shall satisfy these obligations by making payment to the Securities 

and Exchange Commission within 30 days 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 
6500 South MacArthur Boulevard 
Oklahoma City, OK 73169 

4 

Case 1:22-cv-01933-LAK   Document 30   Filed 03/15/23   Page 4 of 6



Case 1:22-cv-01933-LAK Document 26-3 Filed 03/07/23 Page 6 of 7 

and shall be accompanied by a letter identifying the case title, civil action number, and name of 

this Court; [Defendants' names] as a defendants in this action; 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 this 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 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 l J S C § 300) 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 

5 

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Case 1:22-cv-01933-LAK Document 26-3 Filed 03/07/23 Page 7 of 7 

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, 

Defendants shall not, after offset or reduction of any award of compensatory damages in any 

Related Investor Action based on Defendants' payment of disgorgement in this action, argue that 

they are entitled to, nor shall they further benefit by, offset or reduction of such compensatory 

damages award by the amount of any part of Defendants' payment of a civil penalty in this action 

("Penalty Offset"). If the court in any Related Investor Action grants such a Penalty Offset, 

Defendants 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 Defendants by or on behalf of one or more investors based on 

substantially the same facts as alleged in the Complaint in this action. 

V. 

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. 

Dated: ___ __..7--1..jlj,C,Q,;'£ __ , 2023 
( 

Lewis A. Kaplan 
UNITED STA TES DISTRICT JUDGE 

6 

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