SEC v. ZVI FEINER; FNR HEALTHCARE, LLC; EREZ BAVER; NETZACH INVESTMENTS, LLC; and CEDARBROOK MANGEMENT, INC., No. 1:19-cv-06269, Northern District of Illinois (July 6, 2020) — Judgment

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

__________________________________________
        )
UNITED STATES SECURITIES     )
AND EXCHANGE COMMISSION,  )
         )
   Plaintiff,   )
     )
   v.    ) Case No.  1:19-cv-06269
       ) Hon. Robert M. Dow, Jr.
ZVI FEINER,      ) Magistrate Sheila Finnegan
FNR HEALTHCARE, LLC, and      )
EREZ BAVER,       )
       )
   Defendants,      )
       )
 and      )
       )
NETZACH INVESTMENTS, LLC, and    )
CEDARBROOK MANGEMENT, INC.,    )
       )
   Relief Defendants.  )
__________________________________________)

JUDGMENT AS TO DEFENDANTS ZVI FEINER, FNR HEALTHCARE, LLC,
AND RELIEF DEFENDANT NETZACH INVESTMENTS, LLC

The Securities and Exchange Commission having filed a Complaint and Defendants Zvi
Feiner (“Defendant Feiner”) and FNR Healthcare, LLC (“Defendant FNR”) (collectively
“Defendants”), and Relief Defendant Netzach Investments, LLC (“Relief Defendant”), having
entered a general appearance; consented to the Court’s jurisdiction over them and the subject
matter of this action; consented to entry of this Judgment without admitting or denying the
allegations of the Complaint (except as to jurisdiction and except as otherwise provided herein in

paragraph V); waived findings of fact and conclusions of law; and waived any right to appeal
from this Judgment:
I.
 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants 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
 (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) 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, directly or indirectly,

Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)]
and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or
instrumentality of 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) 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 and Relief Defendant shall pay disgorgement of ill-gotten gains and prejudgment
interest thereon; that the amounts of the disgorgement to be paid by Defendants and Relief
Defendant, and the amount of civil penalty to be paid by Defendants, shall be determined by the
Court upon motion of the Commission; and that prejudgment interest shall be calculated from
December 31, 2016, based on the rate of interest used by the Internal Revenue Service for the
underpayment of federal income tax as set forth in 26 U.S.C. § 6621(a)(2).  Upon motion of the

Commission, the Court shall determine whether a civil penalty pursuant to Section 20(d) of the
Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C.
§ 78u(d)(3)] is appropriate and, if so, the amount of the penalty.  In connection with the
Commission’s motion for disgorgement and/or civil penalties, and at any hearing held on such a
motion: (a) Defendants and Relief Defendant will be precluded from arguing that Defendants did
not violate the federal securities laws as alleged in the Complaint; (b) Defendants and Relief
Defendant may not challenge the validity of the Consent or this Judgment; (c) solely for the
purposes of such motion, the allegations of the Complaint shall be accepted as and deemed true
by the Court; and (d) the Court may determine the issues raised in the motion on the basis of
affidavits, declarations, excerpts of sworn deposition or investigative testimony, and
documentary evidence, without regard to the standards for summary judgment contained in Rule
56(c) of the Federal Rules of Civil Procedure.  In connection with the Commission’s motion for
disgorgement and/or civil penalties, the parties may take discovery, including discovery from
appropriate non-parties.
IV.
 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is
incorporated herein with the same force and effect as if fully set forth herein, and that
Defendants and Relief Defendant shall comply with all of the undertakings and agreements set
forth therein.
V.

IT
 IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of
exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, the
allegations in the Complaint are true and admitted by Defendant Feiner, and further, any debt for

disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant Feiner
under this Judgment or any other judgment, order, consent order, decree or settlement agreement
entered in connection with this proceeding, is a debt for the violation by Defendant Feiner and/or
Defendant FNR of the federal securities laws or any regulation or order issued under such laws,
as set forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. § 523(a)(19).
VI.
 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction of this matter for the purposes of enforcing the terms of this Judgment.
VII.
 There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil
Procedure, the Clerk is ordered to enter this Judgment forthwith and without further notice.

Dated:  June 24, 2020

____________________________________
UNITED STATES DISTRICT JUDGE

UNITED STATES DISTRICT COURT 
NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 
 

 
__________________________________________         
        ) 
UNITED STATES SECURITIES    ) 
AND EXCHANGE COMMISSION,  ) 
         ) 
   Plaintiff,   ) 

     ) 
   v.    ) Case No.  1:19-cv-06269     
       ) Hon. Robert M. Dow, Jr. 
ZVI FEINER,      ) Magistrate Sheila Finnegan 
FNR HEALTHCARE, LLC, and   ) 
EREZ BAVER,       ) 
       ) 
   Defendants,   ) 
       ) 
 and      ) 
       ) 
NETZACH INVESTMENTS, LLC, and  ) 
CEDARBROOK MANGEMENT, INC.,   ) 
       ) 
   Relief Defendants.  ) 
__________________________________________) 

 
 
 

JUDGMENT AS TO DEFENDANTS ZVI FEINER, FNR HEALTHCARE, LLC,  
AND RELIEF DEFENDANT NETZACH INVESTMENTS, LLC 

 
The Securities and Exchange Commission having filed a Complaint and Defendants Zvi 

Feiner (“Defendant Feiner”) and FNR Healthcare, LLC (“Defendant FNR”) (collectively 

“Defendants”), and Relief Defendant Netzach Investments, LLC (“Relief Defendant”), having 

entered a general appearance; consented to the Court’s jurisdiction over them and the subject 

matter of this action; consented to entry of this Judgment without admitting or denying the 

allegations of the Complaint (except as to jurisdiction and except as otherwise provided herein in 

Case: 1:19-cv-06269 Document #: 39 Filed: 06/24/20 Page 1 of 5 PageID #:187



 

 
  -2- 

paragraph V); waived findings of fact and conclusions of law; and waived any right to appeal 

from this Judgment: 

I. 

 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants 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 

 (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) 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, directly or indirectly, 

Case: 1:19-cv-06269 Document #: 39 Filed: 06/24/20 Page 2 of 5 PageID #:188



 

 
  -3- 

Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] 

and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or 

instrumentality of 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) 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 and Relief Defendant shall pay disgorgement of ill-gotten gains and prejudgment 

interest thereon; that the amounts of the disgorgement to be paid by Defendants and Relief 

Defendant, and the amount of civil penalty to be paid by Defendants, shall be determined by the 

Court upon motion of the Commission; and that prejudgment interest shall be calculated from 

December 31, 2016, based on the rate of interest used by the Internal Revenue Service for the 

underpayment of federal income tax as set forth in 26 U.S.C. § 6621(a)(2).  Upon motion of the 

Case: 1:19-cv-06269 Document #: 39 Filed: 06/24/20 Page 3 of 5 PageID #:189



 

 
  -4- 

Commission, the Court shall determine whether a civil penalty pursuant to Section 20(d) of the 

Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. 

§ 78u(d)(3)] is appropriate and, if so, the amount of the penalty.  In connection with the 

Commission’s motion for disgorgement and/or civil penalties, and at any hearing held on such a 

motion: (a) Defendants and Relief Defendant will be precluded from arguing that Defendants did 

not violate the federal securities laws as alleged in the Complaint; (b) Defendants and Relief 

Defendant may not challenge the validity of the Consent or this Judgment; (c) solely for the 

purposes of such motion, the allegations of the Complaint shall be accepted as and deemed true 

by the Court; and (d) the Court may determine the issues raised in the motion on the basis of 

affidavits, declarations, excerpts of sworn deposition or investigative testimony, and 

documentary evidence, without regard to the standards for summary judgment contained in Rule 

56(c) of the Federal Rules of Civil Procedure.  In connection with the Commission’s motion for 

disgorgement and/or civil penalties, the parties may take discovery, including discovery from 

appropriate non-parties. 

IV. 

 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is 

incorporated herein with the same force and effect as if fully set forth herein, and that 

Defendants and Relief Defendant shall comply with all of the undertakings and agreements set 

forth therein. 

V.  
 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of 

exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, the 

allegations in the Complaint are true and admitted by Defendant Feiner, and further, any debt for 

Case: 1:19-cv-06269 Document #: 39 Filed: 06/24/20 Page 4 of 5 PageID #:190



 

 
  -5- 

disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant Feiner 

under this Judgment or any other judgment, order, consent order, decree or settlement agreement 

entered in connection with this proceeding, is a debt for the violation by Defendant Feiner and/or 

Defendant FNR of the federal securities laws or any regulation or order issued under such laws, 

as set forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. § 523(a)(19). 

VI. 

 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain 

jurisdiction of this matter for the purposes of enforcing the terms of this Judgment. 

VII.  

 There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil 

Procedure, the Clerk is ordered to enter this Judgment forthwith and without further notice. 

 
Dated:  June 24, 2020 

 
____________________________________ 
UNITED STATES DISTRICT JUDGE 

 

Case: 1:19-cv-06269 Document #: 39 Filed: 06/24/20 Page 5 of 5 PageID #:191