SEC v. EDUARDO HERNANDEZ; CHRISTOPHER FLAGG; DAQUAN LLOYD; and COREY ORTIZ, No. 2:23-cv-08110, Eastern District of New York (July 3, 2025) — Judgment

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
V.
EDUARDO HERNANDEZ, CHRISTOPHER
FLAGG, DAQUAN LLOYD, and COREY ORTIZ,
Defendants.
No. 23 Civ. 8110 (GRB)
FINAL JUDGMENT AS TO DEFENDANT EDUARDO HERNANDEZ
The Securities and Exchange Commission having filed a Complaint and Defendant
Eduardo Hernandez having entered a general appearance; consented to the Court's jurisdiction
over Defendant and the subject matter of this action; consented to entry of this Final Judgment;
waived findings of fact and conclusions of law; and waived any right to appeal from this Final
Judgment:
I.
IT IS HEREBY ORDERED, ADruDGED, AND DECREED that Defendant is
permanently restrained and enjoined from violating, directly or indirectly, Section l0(b) of the
Securities Exchange Act of 1934 (the "Exchange Act") [itS::ttS~C:.,:§ ;lJJ(b~] and Rule lOb-5
promulgated thereunder [ii'7:,c.FJc~t ~2~1liliiif5], 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;
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172

(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
l~~of.@~e.ffiirie:L6~(alli1, the foregoing paragraph also binds the following who
receive actual notice of this Final 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).
II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to
Sections 21(d)(l) and (5) of the Exchange Act [:];5.JlJSl!.€1t§,w.S:t{dt)ill and)(5)], Defendant is
· restrained and enjoined from directly or indirectly, trading securities in any brokerage account he
owns, controls, or has access to that does not have settled cash equal to or greater than the
amount of the securities trade(s).
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
!t6(fefalF:ibie.::of'.<Swltioc~6SfdlJ42l, the foregoing paragraph also binds the following who
receive actual notice of this Final 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).
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173

m.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to
Sections 2l(d)(l) and (5) of the Exchange Act [1l5JJr.S.£~.-§::18~dl)~.l) and)(5)], Defendant is
restrained and enjoined, for a period of five (5) years following the date of entry of this Final
Judgment, from opening a brokerage account without first providing to the relevant brokerage
firm(s) a copy of the Commission's filed Complaint in this matter and any judgment that the
Commission may obtain against him in this matter.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
F.edewR.rde,ofCivitPr.cicedme,~5{d)€2:), the foregoing paragraph also binds the following who
receive actual notice of this Final 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 liable for disgorgement of $525,355, representing his ill-gotten gains as a result of the conduct
alleged in the Complaint, together with prejudgment interest thereon in the amount of $122,996.
However, Defendant's obligation to pay this amount of disgorgement and prejudgment interest
shall be deemed satisfied upon entry of this Final Judgment by the order of restitution entered
against him in United States v. Hernandez et al., 23-CR-0428 (E.D.N.Y.) (Dh,NoJ}S).
V.
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 Defendant
shall comply with all of the undertakings and agreements, set forth therein.
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174

VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, for purposes of
exceptions to discharge set forth in Section 523 of the Bankruptcy Code, U ~-l:KS.C!
1
S-5:23', 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 Defendant of the federal
securities laws or any regulation or order issued under such laws, as set forth in Section
523(a)(l9) of the Bankruptcy Code, U 'llS.C .. §~523fa:)(t 9).
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.
VITI.
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.
Datcd:9 W1Jl
3o .~
ls/Gary R. Brown
UNITEo<stAtts DISTRICT JUDGE
4

175

UNITED STATES DISTRICT COURT 
EASTERN DISTRICT OF NEW YORK 

SECURITIES AND EXCHANGE COMMISSION, 

Plaintiff, 

V. 

EDUARDO HERNANDEZ, CHRISTOPHER 
FLAGG, DAQUAN LLOYD, and COREY ORTIZ, 

Defendants. 

No. 23 Civ. 8110 (GRB) 

FINAL JUDGMENT AS TO DEFENDANT EDUARDO HERNANDEZ 

The Securities and Exchange Commission having filed a Complaint and Defendant 

Eduardo Hernandez having entered a general appearance; consented to the Court's jurisdiction 

over Defendant and the subject matter of this action; consented to entry of this Final Judgment; 

waived findings of fact and conclusions of law; and waived any right to appeal from this Final 

Judgment: 

I. 

IT IS HEREBY ORDERED, ADruDGED, AND DECREED that Defendant is 

permanently restrained and enjoined from violating, directly or indirectly, Section l0(b) of the 

Securities Exchange Act of 1934 (the "Exchange Act") [itS::tt S~C:.,:§;l JJ(b~] and Rule lOb-5 

promulgated thereunder [ii'7:,c.FJc~t ~2~1liliiif5], 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; 

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172



(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 

l~~of.@~e.ffiirie:L6~(alli1, the foregoing paragraph also binds the following who 

receive actual notice of this Final 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). 

II. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to 

Sections 21(d)(l) and (5) of the Exchange Act [:];5.JlJSl!.€1t§,w.S:t{dt)i ll and)(5)], Defendant is 

· restrained and enjoined from directly or indirectly, trading securities in any brokerage account he 

owns, controls, or has access to that does not have settled cash equal to or greater than the 

amount of the securities trade(s). 

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

!t6(fefalF:ibie.::of '.<Swltioc~6SfdlJ42l, the foregoing paragraph also binds the following who 

receive actual notice of this Final 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). 

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173



m. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to 

Sections 2l(d)(l) and (5) of the Exchange Act [1l5JJr.S.£~.-§::18~dl)~.l) and)(5)], Defendant is 

restrained and enjoined, for a period of five (5) years following the date of entry of this Final 

Judgment, from opening a brokerage account without first providing to the relevant brokerage 

firm(s) a copy of the Commission's filed Complaint in this matter and any judgment that the 

Commission may obtain against him in this matter. 

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

F.edewR.rde,ofCivitPr.cicedme,~5{d)€2:), the foregoing paragraph also binds the following who 

receive actual notice of this Final 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 liable for disgorgement of $525,355, representing his ill-gotten gains as a result of the conduct 

alleged in the Complaint, together with prejudgment interest thereon in the amount of $122,996. 

However, Defendant's obligation to pay this amount of disgorgement and prejudgment interest 

shall be deemed satisfied upon entry of this Final Judgment by the order of restitution entered 

against him in United States v. Hernandez et al., 23-CR-0428 (E.D.N.Y.) (Dh,NoJ}S). 

V. 

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 Defendant 

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

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174



VI. 

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

exceptions to discharge set forth in Section 523 of the Bankruptcy Code, U ~-l:KS.C!1S- 5:23', 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 Defendant of the federal 

securities laws or any regulation or order issued under such laws, as set forth in Section 

523(a)( l9) of the Bankruptcy Code, U 'llS.C .. §~523fa:)(t9). 

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. 

VITI. 

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. 

Datcd:9 W1Jl 3o .~ ls/Gary R. Brown 

UNITEo<stAtts DISTRICT JUDGE 

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