SEC v. Anthony Caine; Anish Parvataneni; LJM Funds Management, Ltd.; Honorable Keri Holleb Hotaling; and LJM Partners, Ltd., No. 1:21-cv-02859, Northern District of Illinois (July 1, 2025) — Judgment

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

SECURITIES AND EXCHANGE
COMMISSION,

Plaintiff,

v. Case No. 1:21-cv-02859

ANTHONY CAINE,
ANISH PARVATANENI,
LJM FUNDS MANAGEMENT, LTD.,
Honorable Keri Holleb Hotaling

and LJM PARTNERS, LTD.,

Defendants.

FINAL JUDGMENT AS TO DEFENDANT ANISH PARVATANENI
The Securities and Exchange Commission having filed a Complaint and Defendant Anish
Parvataneni  (“Defendant”)  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 without admitting or denying the allegations of the Complaint (except as to jurisdiction
and except as otherwise provided herein in paragraph IX); waived findings of fact and conclusions
of law; and waived any right to appeal from this Final Judgment:
I.
IT   IS   HEREBY   ORDERED,   ADJUDGED,   AND   DECREED   that   Defendant   is
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

2

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  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 Defendant
is 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

3

(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  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).
III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is  permanently  restrained  and  enjoined  from  violating  Sections  206(1)  and  206(2)  of  the
Investment Advisers Act of 1940 (“Advisers Act”) [15 U.S.C. §80b-6(1), (2)], by, as an investment
adviser,  using  the  mails  or  any  means  or  instrumentality  of  interstate  commerce,  directly  or
indirectly:
(a) to employ any device, scheme, or artifice to defraud any client or prospective client; or
(b) to engage in any transaction, practice, or course of business which operates as a fraud
or deceit upon any client or prospection client.
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  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).

4

IV.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is  permanently  restrained  and  enjoined  from  violating  Section  206(4)  of  the  Advisers  Act  [15
U.S.C. § 80b-6(4)] and Rule 206(4)-8 promulgated thereunder [17 C.F.R. § 275.206(4)-8] by, as
an  investment  adviser  to  a  pooled  investment  vehicle,  using  the  mails,  or  any  means  or
instrumentality of interstate commerce, directly or indirectly:
(a) to make any untrue statement of a material fact or to omit to state a material fact
necessary  to  make  the  statements  made,  in  the  light  of  the  circumstances  under
which they were made, not misleading, to any investor or prospective investors in
the pooled investment vehicle; or
(b) otherwise  engage  in  any  act,  practice,  or  course  of  business  that  is  fraudulent,
deceptive, or manipulative with respect to any investor or prospective investor in
the pooled investment vehicle.
 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  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).
V.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is permanently restrained and enjoined from violating
 Section 34(b) of the Investment Company
Act [15 U.S.C. § 80a-33(b)], directly or indirectly, by making any untrue statement of a material
fact in any registration statement, application, report, account, record, or other document filed or
transmitted pursuant to the Investment Company Act, or omitting to state in any such document

5

any fact necessary in order to make the statements made, in light of the circumstances under which
they are made, not materially misleading.
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  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).
VI.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to
Sections 21(d)(1) and 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(1) and (5)], Section 20(b)
of the Securities Act [15 U.S.C. § 77t(b)],  Section 209(d) of the Advisers Act [15 U.S.C. § 80b-
9(d)], and Section 42(d) of the Investment Company Act [15 U.S.C. § 80a-41(d)], Defendant is
enjoined,  for  a  period  of  one  year,  from  managing  or  advising  on  securities  investments  for,  or
acting as or being associated with an investment adviser to,  any  third-party,  except  for  his  wife
and children.
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  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).
VII.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is liable for
disgorgement of $512,725, representing net profits gained as a result of the conduct alleged in the

6

Complaint,  together  with  prejudgment  interest  thereon  in  the  amount  of  $208,368,   and a  civil
monetary penalty in the amount of $200,000 pursuant to Section 21(d)(3) of the Exchange Act [15
U.S.C. § 78u(d)(3)], Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)], Section 209(e) of the
Advisers Act [15 U.S.C. §   80b-9(e)], and Section 42(e) of the Investment Company Act [15 U.S.C.
§  80a-41(e)].  Defendant  shall  satisfy  this  obligation  by  paying  $921,093 to  the  Securities  and
Exchange Commission within 30 days after entry of this Final Judgment.
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; Anish Parvataneni, 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

7

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 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 monetary
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 monetary 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

8

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
penalties 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.
VIII.
 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.
IX.

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 monetary  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)(19) of the Bankruptcy Code, 11 U.S.C. § 523(a)(19).
X.
 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.

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XI.
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:  June 30, 2025
____________________________________
KERI L. HOLLEB HOTALING
UNITED STATES MAGISTRATE JUDGE

UNITED STATES DISTRICT COURT 
NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 
 
  
SECURITIES AND EXCHANGE 
COMMISSION, 

 

  
Plaintiff,  

  
v. Case No. 1:21-cv-02859 

   
ANTHONY CAINE,  
ANISH PARVATANENI, 
LJM FUNDS MANAGEMENT, LTD.,  

Honorable Keri Holleb Hotaling 
 

and LJM PARTNERS, LTD., 
 

 

Defendants.  
  

  
FINAL JUDGMENT AS TO DEFENDANT ANISH PARVATANENI 

The Securities and Exchange Commission having filed a Complaint and Defendant Anish 

Parvataneni (“Defendant”) 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 without admitting or denying the allegations of the Complaint (except as to jurisdiction 

and except as otherwise provided herein in paragraph IX); waived findings of fact and conclusions 

of law; and waived any right to appeal from this Final Judgment: 

I. 

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

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 

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2 
 

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 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 Defendant 

is 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  

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3 
 

(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 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). 

III. 

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

is permanently restrained and enjoined from violating Sections 206(1) and 206(2) of the 

Investment Advisers Act of 1940 (“Advisers Act”) [15 U.S.C. §80b-6(1), (2)], by, as an investment 

adviser, using the mails or any means or instrumentality of interstate commerce, directly or 

indirectly:  

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

(b) to engage in any transaction, practice, or course of business which operates as a fraud 

or deceit upon any client or prospection client. 

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 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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4 
 

IV. 

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

is permanently restrained and enjoined from violating Section 206(4) of the Advisers Act [15 

U.S.C. § 80b-6(4)] and Rule 206(4)-8 promulgated thereunder [17 C.F.R. § 275.206(4)-8] by, as 

an investment adviser to a pooled investment vehicle, using the mails, or any means or 

instrumentality of interstate commerce, directly or indirectly: 

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

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

which they were made, not misleading, to any investor or prospective investors in 

the pooled investment vehicle; or 

(b) otherwise engage in any act, practice, or course of business that is fraudulent, 

deceptive, or manipulative with respect to any investor or prospective investor in 

the pooled investment vehicle. 

 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 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). 

V. 

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

is permanently restrained and enjoined from violating Section 34(b) of the Investment Company 

Act [15 U.S.C. § 80a-33(b)], directly or indirectly, by making any untrue statement of a material 

fact in any registration statement, application, report, account, record, or other document filed or 

transmitted pursuant to the Investment Company Act, or omitting to state in any such document 

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5 
 

any fact necessary in order to make the statements made, in light of the circumstances under which 

they are made, not materially misleading. 

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 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). 

VI. 

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

Sections 21(d)(1) and 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(1) and (5)], Section 20(b) 

of the Securities Act [15 U.S.C. § 77t(b)], Section 209(d) of the Advisers Act [15 U.S.C. § 80b-

9(d)], and Section 42(d) of the Investment Company Act [15 U.S.C. § 80a-41(d)], Defendant is 

enjoined, for a period of one year, from managing or advising on securities investments for, or 

acting as or being associated with an investment adviser to, any third-party, except for his wife 

and children. 

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 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). 

VII. 

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is liable for 

disgorgement of $512,725, representing net profits gained as a result of the conduct alleged in the 

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6 
 

Complaint, together with prejudgment interest thereon in the amount of $208,368, and a civil 

monetary penalty in the amount of $200,000 pursuant to Section 21(d)(3) of the Exchange Act [15 

U.S.C. § 78u(d)(3)], Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)], Section 209(e) of the 

Advisers Act [15 U.S.C. § 80b-9(e)], and Section 42(e) of the Investment Company Act [15 U.S.C. 

§ 80a-41(e)]. Defendant shall satisfy this obligation by paying $921,093 to the Securities and 

Exchange Commission within 30 days after entry of this Final Judgment. 

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; Anish Parvataneni, 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 

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http://www.sec.gov/about/offices/ofm.htm


7 
 

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 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 monetary 

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 monetary 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 

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8 
 

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 

penalties 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. 

VIII. 

 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. 

IX.  
 

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 monetary 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)(19) of the Bankruptcy Code, 11 U.S.C. § 523(a)(19). 

X. 

 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. 

  

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9 
 

XI. 

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:  June 30, 2025 

____________________________________ 
KERI L. HOLLEB HOTALING 
UNITED STATES MAGISTRATE JUDGE 

 

Case: 1:21-cv-02859 Document #: 167 Filed: 06/30/25 Page 9 of 9 PageID #:10630