In re RICHARD KONOPKA
Richard Konopka, a former registered representative, acted as an unregistered broker to solicit over $65 million for Silver Edge’s unregistered pre‑IPO funds, resulting in an SEC cease‑and‑desist order, a two‑year industry bar and a $61,000 civil penalty.
Richard Konopka, a former registered representative, marketed and sold interests in Silver Edge Financial LLC’s unregistered pre‑IPO series funds from January 2019 through March 2023, raising more than $65 million from accredited investors while operating as an unregistered broker. The SEC found his conduct violated Section 15(a) of the Exchange Act and imposed a cease‑and‑desist order, a two‑year prohibition on association with broker‑dealers or penny‑stock offerings, and a $61,000 civil penalty. Konopka consented to the order without admitting or denying wrongdoing, and the penalty is non‑dischargeable and cannot be offset against any investor restitution awards.
Richard Konopka, age 39 and a resident of Hackettstown, New Jersey, was a sales representative for Silver Edge Financial LLC from January 2019 until the SEC filing in March 2023, after previously being a registered broker‑dealer representative from 2009 to 2019. Silver Edge operated two unregistered pre‑IPO series funds that sold membership interests to accredited investors, raising over $65 million through a sales force of independent contractors, including Konopka. Acting as an unregistered broker, Konopka solicited investors nationwide via cold‑calls and commission‑based sales, violating Section 15(a) of the Securities Exchange Act. The SEC instituted administrative and cease‑and‑desist proceedings, finding his conduct willful and imposing a cease‑and‑desist order, a two‑year bar from association with any broker‑dealer or participation in penny‑stock offerings, and a $61,000 civil penalty. Konopka consented to the findings without admitting or denying wrongdoing, and the penalty is enforceable, non‑dischargeable in bankruptcy, and cannot be offset against any future investor restitution. The settlement also requires him to comply with ongoing reporting and prohibits future unregistered broker activities.
Extracted insights
- $65.00M $65 million $10M–$100M
- $61K $61,000 $10K–$100K
- person richard konopka
- company securities
- agency Securities and Exchange Commission
- company Silver Edge Financial LLC
- person silver edge funds
- person unregistered broker
- SEC Institutes Administrative and Cease-and-Desist Proceedings
- SEC Institutes Proceedings Against Richard Konopka
- Richard Konopka Submitted Offer of Settlement
- SEC Determined to Accept Offer of Settlement
- Richard Konopka Consents to Entry of Order
- Richard Konopka Solicited Investors
- Richard Konopka Marketed and Sold Securities
- Richard Konopka Operated as Unregistered Broker
- Richard Konopka Was Sales Representative at Silver Edge Financial LLC
- Richard Konopka Solicited Investment in Silver Edge Funds
- Silver Edge Financial LLC Operates Silver Edge Funds
- Silver Edge Financial LLC Sold $65 Million Worth of Pre-IPO Series Interests
- Daniel J. Mackle, Sr. Is CEO of Silver Edge Financial LLC
- Daniel J. Mackle, Sr. Procured Interests in Pre-IPO Shares
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 97037 / March 3, 2023
ADMINISTRATIVE PROCEEDING
File No. 3-21328
In the Matter of
RICHARD KONOPKA,
Respondent.
ORDER INSTITUTING
ADMINISTRATIVE AND CEASE-AND-
DESIST PROCEEDINGS, PURSUANT
TO SECTIONS 15(b) AND 21C OF THE
SECURITIES EXCHANGE ACT OF
1934, MAKING FINDINGS, AND
IMPOSING REMEDIAL SANCTIONS
AND A CEASE-AND-DESIST ORDER
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in
the public interest that public administrative and cease-and-desist proceedings be, and hereby
are, instituted pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934
(“Exchange Act”) against Richard Konopka (“Konopka” or “Respondent”).
II.
In anticipation of the institution of these proceedings, Respondent has submitted an Offer
of Settlement (the “Offer”), which the Commission has determined to accept. Solely for the
purpose of these proceedings and any other proceedings brought by or on behalf of the
Commission, or to which the Commission is a party, and without admitting or denying the
findings herein, except as to the Commission’s jurisdiction over him and the subject matter of
these proceedings, which are admitted, and except as provided herein in Section V, Respondent
consents to the entry of this Order Instituting Administrative and Cease-and-Desist Proceedings,
2
Pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934, Making Findings,
and Imposing Remedial Sanctions and a Cease-and-Desist Order (“Order”), as set forth below.
III.
On the basis of this Order and Respondent’s Offer, the Commission finds
1
that:
Summary
1. These proceedings arise out of Respondent’s effort to solicit investors on behalf of
Silver Edge Financial LLC (“Silver Edge”), an entity not registered with the Commission that
operates two pooled investment vehicles—the Silver Edge Pre-IPO Fund, LLC and the Silver Edge
Venture Fund, LLC (the “Silver Edge Funds”). The Silver Edge Funds are series LLCs formed to
invest in securities of private companies that Silver Edge identified as good candidates for an initial
public offering (“IPO”) or other liquidity event within a 2-5 year time horizon. Since January 2019,
Respondent marketed and sold securities in the form of series interests in the Silver Edge Funds
nationwide and was compensated based on his success in recruiting investors. In so doing,
Respondent operated as an unregistered broker.
Respondent
2. Richard Konopka (CRD No. 5657843), age 39, is a resident of Hackettstown,
New Jersey. Konopka was a sales representative at Silver Edge from January 2019 to the
present. Konopka solicited investment in at least seven pre-IPO series offerings of the Silver
Edge Funds. Konopka was previously a registered representative associated with broker-dealers
registered with the Commission from March 2009 through July 2019.
Other Relevant Entities
3. Silver Edge Financial, LLC, incorporated in Delaware on December 26, 2018,
operates, and solicits investments in, the Silver Edge Funds. Silver Edge’s primary place of
business is in Hackensack, New Jersey. Since January 2019, Silver Edge and its CEO, Daniel
J. Mackle, Sr. (“Mackle”), procured interests in a portfolio of pre-IPO shares which it offered
to investors as membership interests in series of the Silver Edge Funds. During the relevant
period, Silver Edge sold over $65 million worth of pre-IPO series interests to investors through
a sales force of unregistered brokers. Silver Edge has never been registered with the
Commission as a broker- dealer.
4. Silver Edge Pre-IPO Fund, LLC, incorporated in Delaware on January 14, 2019,
is a pooled investment vehicle managed by Mackle and operated by Silver Edge. The fund’s
1
The findings herein are made pursuant to Respondent’s Offer of Settlement and are not binding on any
other person or entity in this or any other proceeding.
3
assets include rights to pre-IPO shares which are offered to investors as series interests in the
fund.
5. Silver Edge Venture Fund, LLC, incorporated in Delaware on January 15, 2020,
is a pooled investment vehicle managed by Mackle and operated by Silver Edge. The fund’s
assets include rights to pre-IPO shares which are offered to investors as series interests in the
fund.
Facts
6. Since January 2019, Silver Edge has run two “pre-IPO” funds that provide
accredited investors access to the shares of private companies that the firm’s manager anticipates
will enter into initial public offerings within a 2-5 year window. The Silver Edge Funds are both
set up as series LLCs, where each individual series of the respective fund holds rights to shares
of a particular private company in the event of an IPO or other liquidity event. The series
interests are securities.
7. Silver Edge sells the majority of interests in the series through a sales force of
independent contractors, including Respondent. From January 2019 through the present,
Respondent solicited investors to purchase pre-IPO shares through series interests in the Silver
Edge Funds. If the underlying pre-IPO company went public or otherwise experienced a
liquidity event, investors in the Silver Edge Funds received shares in the company or cash
reflecting the market value of those shares, per the terms of the Silver Edge Operating
Agreement. Respondent’s efforts contributed to Silver Edge raising over $65 million from
accredited investors during this time.
8. Respondent used interstate commerce or the mails to effect transactions in the
Silver Edge Funds’ securities or to induce or attempt to induce others to purchase or sell the
Silver Edge Funds’ securities. Respondent received a list of accredited investors from Silver
Edge’s CEO, and routinely cold-called investors located nationwide from that list. Respondent
provided the potential investors with information regarding the companies whose pre-IPO shares
Silver Edge was offering, and took steps to secure investments by providing investment
documentation to potential investors and following up to solicit investors by phone, text, or
email. Respondent was compensated based on his success in selling series interests in the Silver
Edge Funds, including through discretionary bonuses that were paid based on the Respondent’s
success bringing in new investors.
9. When soliciting investors on behalf of Silver Edge, Respondent was not
associated with a broker-dealer registered with the Commission.
Violations
4
10. As a result of the conduct described above, Respondent willfully
2
violated Section
15(a) of the Exchange Act, which prohibits any broker or dealer, from effecting any transaction
in, or inducing or attempting to induce the purchase or sale of, any security unless the broker or
dealer is registered in accordance with Section 15(b) of the Exchange Act or is a natural person
who is associated with a registered broker or dealer.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest
to impose the sanctions agreed to in Respondent’s Offer.
Accordingly, pursuant to Sections 15(b) and 21C of the Exchange Act, it is hereby
ORDERED that:
A. Respondent cease and desist from committing or causing any violations and any
future violations Section 15(a) of the Exchange Act.
B. Respondent be, and hereby is:
barred from association with any broker, dealer, investment adviser,
municipal securities dealer, municipal advisor, transfer agent, or nationally
recognized statistical rating organization with the right to apply for reentry
after two (2) years to the appropriate self-regulatory organization, or if there
is none, to the Commission; and
barred from participating in any offering of a penny stock, including:
acting as a promoter, finder, consultant, agent or other person who
engages in activities with a broker, dealer or issuer for purposes of the
issuance or trading in any penny stock, or inducing or attempting to induce
the purchase or sale of any penny stock with the right to apply for reentry
after two (2) years to the appropriate self-regulatory organization, or if there
is none, to the Commission.
D. Any reapplication for association by the Respondent will be subject to the
2
“Willfully,” for purposes of imposing relief under Section 15(b) of the Exchange Act and Section 9(b)
of the Investment Company Act, “‘means no more than that the person charged with the duty knows
what he is doing.’” Wonsover v. SEC, 205 F.3d 408, 414 (D.C. Cir. 2000) (quoting Hughes v. SEC, 174
F.2d 969, 977 (D.C. Cir. 1949)). There is no requirement that the actor “also be aware that he is
violating one of the Rules or Acts.” Tager v. SEC, 344 F.2d 5, 8 (2d Cir. 1965). The decision in The
Robare Group, Ltd. v. SEC, which construed the term “willfully” for purposes of a differently
structured statutory provision, does not alter that standard. 922 F.3d 468, 478-79 (D.C. Cir. 2019)
(setting forth the showing required to establish that a person has “willfully omit[ted]” material
information from a required disclosure in violation of Section 207 of the Advisers Act).
5
applicable laws and regulations governing the reentry process, and reentry may be conditioned
upon a number of factors, including, but not limited to, compliance with the Commission’s order
and payment of any or all of the following: (a) any disgorgement or civil penalties ordered by a
Court against the Respondent in any action brought by the Commission; (b) any disgorgement
amounts ordered against the Respondent for which the Commission waived payment; (c) any
arbitration award related to the conduct that served as the basis for the Commission order; (d)
any self-regulatory organization arbitration award to a customer, whether or not related to the
conduct that served as the basis for the Commission order; and (e) any restitution order by a self-
regulatory organization, whether or not related to the conduct that served as the basis for the
Commission order.
E. Konopka shall, within 14 days of the entry of this Order, pay a civil money penalty in
the amount of $61,000 to the Securities and Exchange Commission for transfer to the general fund of
the United States Treasury, subject to Exchange Act Section 21F(g)(3). If timely payment is not
made, additional interest shall accrue pursuant to 31 U.S.C. §3717.
Payment must be made in one of the following ways:
(1) Respondent may transmit payment electronically to the Commission,
which will provide detailed ACH transfer/Fedwire instructions upon
request;
(2) Respondent may make direct payment from a bank account via Pay.gov
through the SEC website at http://www.sec.gov/about/offices/ofm.htm; or
(3) Respondent may pay by certified check, bank cashier’s check, or United
States postal money order, made payable to the Securities and Exchange
Commission and hand-delivered or mailed to:
Enterprise Services Center
Accounts Receivable Branch
HQ Bldg., Room 181, AMZ-341
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
Payments by check or money order must be accompanied by a cover letter identifying
Konopka as a Respondent in these proceedings, and the file number of these proceedings; a copy
of the cover letter and check or money order must be sent to David Becker, Division of
Enforcement, Securities and Exchange Commission, 100 F St., NE, Washington, DC 20549-
0213.
F. Amounts ordered to be paid as civil money penalties pursuant to this Order 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, Respondent agrees that in any Related Investor
Action, Respondent shall not argue that he are entitled to, nor shall he benefit by, offset or
6
reduction of any award of compensatory damages by the amount of any part of Respondent’s
payment of a civil penalty in this action (“Penalty Offset”). If the court in any Related Investor
Action grants such a Penalty Offset, Respondent agrees that he 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 Securities and Exchange Commission. 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 proceeding. For purposes of this paragraph, a
“Related Investor Action” means a private damages action brought against Respondent by or on
behalf of one or more investors based on substantially the same facts as alleged in the Order
instituted by the Commission in this proceeding.
V.
It is further Ordered that, solely for purposes of exceptions to discharge set forth in
Section 523 of the Bankruptcy Code, 11 U.S.C. §523, the findings in this Order are true and
admitted by Respondent, and further, any debt for disgorgement, prejudgment interest, civil
penalty or other amounts due by Respondent under this Order or any other judgment, order,
consent order, decree or settlement agreement entered in connection with this proceeding, is a
debt for the violation by Respondent 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).
By the Commission.
Vanessa A. Countryman
Secretary UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 97037 / March 3, 2023
ADMINISTRATIVE PROCEEDING
File No. 3-21328
In the Matter of
RICHARD KONOPKA,
Respondent.
ORDER INSTITUTING
ADMINISTRATIVE AND CEASE-AND-
DESIST PROCEEDINGS, PURSUANT
TO SECTIONS 15(b) AND 21C OF THE
SECURITIES EXCHANGE ACT OF
1934, MAKING FINDINGS, AND
IMPOSING REMEDIAL SANCTIONS
AND A CEASE-AND-DESIST ORDER
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in
the public interest that public administrative and cease-and-desist proceedings be, and hereby
are, instituted pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934
(“Exchange Act”) against Richard Konopka (“Konopka” or “Respondent”).
II.
In anticipation of the institution of these proceedings, Respondent has submitted an Offer
of Settlement (the “Offer”), which the Commission has determined to accept. Solely for the
purpose of these proceedings and any other proceedings brought by or on behalf of the
Commission, or to which the Commission is a party, and without admitting or denying the
findings herein, except as to the Commission’s jurisdiction over him and the subject matter of
these proceedings, which are admitted, and except as provided herein in Section V, Respondent
consents to the entry of this Order Instituting Administrative and Cease-and-Desist Proceedings,
2
Pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934, Making Findings,
and Imposing Remedial Sanctions and a Cease-and-Desist Order (“Order”), as set forth below.
III.
On the basis of this Order and Respondent’s Offer, the Commission finds1 that:
Summary
1. These proceedings arise out of Respondent’s effort to solicit investors on behalf of
Silver Edge Financial LLC (“Silver Edge”), an entity not registered with the Commission that
operates two pooled investment vehicles—the Silver Edge Pre-IPO Fund, LLC and the Silver Edge
Venture Fund, LLC (the “Silver Edge Funds”). The Silver Edge Funds are series LLCs formed to
invest in securities of private companies that Silver Edge identified as good candidates for an initial
public offering (“IPO”) or other liquidity event within a 2-5 year time horizon. Since January 2019,
Respondent marketed and sold securities in the form of series interests in the Silver Edge Funds
nationwide and was compensated based on his success in recruiting investors. In so doing,
Respondent operated as an unregistered broker.
Respondent
2. Richard Konopka (CRD No. 5657843), age 39, is a resident of Hackettstown,
New Jersey. Konopka was a sales representative at Silver Edge from January 2019 to the
present. Konopka solicited investment in at least seven pre-IPO series offerings of the Silver
Edge Funds. Konopka was previously a registered representative associated with broker-dealers
registered with the Commission from March 2009 through July 2019.
Other Relevant Entities
3. Silver Edge Financial, LLC, incorporated in Delaware on December 26, 2018,
operates, and solicits investments in, the Silver Edge Funds. Silver Edge’s primary place of
business is in Hackensack, New Jersey. Since January 2019, Silver Edge and its CEO, Daniel
J. Mackle, Sr. (“Mackle”), procured interests in a portfolio of pre-IPO shares which it offered
to investors as membership interests in series of the Silver Edge Funds. During the relevant
period, Silver Edge sold over $65 million worth of pre-IPO series interests to investors through
a sales force of unregistered brokers. Silver Edge has never been registered with the
Commission as a broker- dealer.
4. Silver Edge Pre-IPO Fund, LLC, incorporated in Delaware on January 14, 2019,
is a pooled investment vehicle managed by Mackle and operated by Silver Edge. The fund’s
1 The findings herein are made pursuant to Respondent’s Offer of Settlement and are not binding on any
other person or entity in this or any other proceeding.
3
assets include rights to pre-IPO shares which are offered to investors as series interests in the
fund.
5. Silver Edge Venture Fund, LLC, incorporated in Delaware on January 15, 2020,
is a pooled investment vehicle managed by Mackle and operated by Silver Edge. The fund’s
assets include rights to pre-IPO shares which are offered to investors as series interests in the
fund.
Facts
6. Since January 2019, Silver Edge has run two “pre-IPO” funds that provide
accredited investors access to the shares of private companies that the firm’s manager anticipates
will enter into initial public offerings within a 2-5 year window. The Silver Edge Funds are both
set up as series LLCs, where each individual series of the respective fund holds rights to shares
of a particular private company in the event of an IPO or other liquidity event. The series
interests are securities.
7. Silver Edge sells the majority of interests in the series through a sales force of
independent contractors, including Respondent. From January 2019 through the present,
Respondent solicited investors to purchase pre-IPO shares through series interests in the Silver
Edge Funds. If the underlying pre-IPO company went public or otherwise experienced a
liquidity event, investors in the Silver Edge Funds received shares in the company or cash
reflecting the market value of those shares, per the terms of the Silver Edge Operating
Agreement. Respondent’s efforts contributed to Silver Edge raising over $65 million from
accredited investors during this time.
8. Respondent used interstate commerce or the mails to effect transactions in the
Silver Edge Funds’ securities or to induce or attempt to induce others to purchase or sell the
Silver Edge Funds’ securities. Respondent received a list of accredited investors from Silver
Edge’s CEO, and routinely cold-called investors located nationwide from that list. Respondent
provided the potential investors with information regarding the companies whose pre-IPO shares
Silver Edge was offering, and took steps to secure investments by providing investment
documentation to potential investors and following up to solicit investors by phone, text, or
email. Respondent was compensated based on his success in selling series interests in the Silver
Edge Funds, including through discretionary bonuses that were paid based on the Respondent’s
success bringing in new investors.
9. When soliciting investors on behalf of Silver Edge, Respondent was not
associated with a broker-dealer registered with the Commission.
Violations
4
10. As a result of the conduct described above, Respondent willfully2 violated Section
15(a) of the Exchange Act, which prohibits any broker or dealer, from effecting any transaction
in, or inducing or attempting to induce the purchase or sale of, any security unless the broker or
dealer is registered in accordance with Section 15(b) of the Exchange Act or is a natural person
who is associated with a registered broker or dealer.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest
to impose the sanctions agreed to in Respondent’s Offer.
Accordingly, pursuant to Sections 15(b) and 21C of the Exchange Act, it is hereby
ORDERED that:
A. Respondent cease and desist from committing or causing any violations and any
future violations Section 15(a) of the Exchange Act.
B. Respondent be, and hereby is:
barred from association with any broker, dealer, investment adviser,
municipal securities dealer, municipal advisor, transfer agent, or nationally
recognized statistical rating organization with the right to apply for reentry
after two (2) years to the appropriate self-regulatory organization, or if there
is none, to the Commission; and
barred from participating in any offering of a penny stock, including:
acting as a promoter, finder, consultant, agent or other person who
engages in activities with a broker, dealer or issuer for purposes of the
issuance or trading in any penny stock, or inducing or attempting to induce
the purchase or sale of any penny stock with the right to apply for reentry
after two (2) years to the appropriate self-regulatory organization, or if there
is none, to the Commission.
D. Any reapplication for association by the Respondent will be subject to the
2 “Willfully,” for purposes of imposing relief under Section 15(b) of the Exchange Act and Section 9(b)
of the Investment Company Act, “‘means no more than that the person charged with the duty knows
what he is doing.’” Wonsover v. SEC, 205 F.3d 408, 414 (D.C. Cir. 2000) (quoting Hughes v. SEC, 174
F.2d 969, 977 (D.C. Cir. 1949)). There is no requirement that the actor “also be aware that he is
violating one of the Rules or Acts.” Tager v. SEC, 344 F.2d 5, 8 (2d Cir. 1965). The decision in The
Robare Group, Ltd. v. SEC, which construed the term “willfully” for purposes of a differently
structured statutory provision, does not alter that standard. 922 F.3d 468, 478-79 (D.C. Cir. 2019)
(setting forth the showing required to establish that a person has “willfully omit[ted]” material
information from a required disclosure in violation of Section 207 of the Advisers Act).
5
applicable laws and regulations governing the reentry process, and reentry may be conditioned
upon a number of factors, including, but not limited to, compliance with the Commission’s order
and payment of any or all of the following: (a) any disgorgement or civil penalties ordered by a
Court against the Respondent in any action brought by the Commission; (b) any disgorgement
amounts ordered against the Respondent for which the Commission waived payment; (c) any
arbitration award related to the conduct that served as the basis for the Commission order; (d)
any self-regulatory organization arbitration award to a customer, whether or not related to the
conduct that served as the basis for the Commission order; and (e) any restitution order by a self-
regulatory organization, whether or not related to the conduct that served as the basis for the
Commission order.
E. Konopka shall, within 14 days of the entry of this Order, pay a civil money penalty in
the amount of $61,000 to the Securities and Exchange Commission for transfer to the general fund of
the United States Treasury, subject to Exchange Act Section 21F(g)(3). If timely payment is not
made, additional interest shall accrue pursuant to 31 U.S.C. §3717.
Payment must be made in one of the following ways:
(1) Respondent may transmit payment electronically to the Commission,
which will provide detailed ACH transfer/Fedwire instructions upon
request;
(2) Respondent may make direct payment from a bank account via Pay.gov
through the SEC website at http://www.sec.gov/about/offices/ofm.htm; or
(3) Respondent may pay by certified check, bank cashier’s check, or United
States postal money order, made payable to the Securities and Exchange
Commission and hand-delivered or mailed to:
Enterprise Services Center
Accounts Receivable Branch
HQ Bldg., Room 181, AMZ-341
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
Payments by check or money order must be accompanied by a cover letter identifying
Konopka as a Respondent in these proceedings, and the file number of these proceedings; a copy
of the cover letter and check or money order must be sent to David Becker, Division of
Enforcement, Securities and Exchange Commission, 100 F St., NE, Washington, DC 20549-
0213.
F. Amounts ordered to be paid as civil money penalties pursuant to this Order 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, Respondent agrees that in any Related Investor
Action, Respondent shall not argue that he are entitled to, nor shall he benefit by, offset or
http://www.sec.gov/about/offices/ofm.htm
6
reduction of any award of compensatory damages by the amount of any part of Respondent’s
payment of a civil penalty in this action (“Penalty Offset”). If the court in any Related Investor
Action grants such a Penalty Offset, Respondent agrees that he 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 Securities and Exchange Commission. 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 proceeding. For purposes of this paragraph, a
“Related Investor Action” means a private damages action brought against Respondent by or on
behalf of one or more investors based on substantially the same facts as alleged in the Order
instituted by the Commission in this proceeding.
V.
It is further Ordered that, solely for purposes of exceptions to discharge set forth in
Section 523 of the Bankruptcy Code, 11 U.S.C. §523, the findings in this Order are true and
admitted by Respondent, and further, any debt for disgorgement, prejudgment interest, civil
penalty or other amounts due by Respondent under this Order or any other judgment, order,
consent order, decree or settlement agreement entered in connection with this proceeding, is a
debt for the violation by Respondent 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).
By the Commission.
Vanessa A. Countryman
Secretary
UNITED_STATES_OF_AMERICA
In_the_Matter_of
RICHARD_KONOPKA,
Respondent.
Respondent
Other_Relevant_Entities
Facts