SEC v. Zachari Alan Cargnino; Susann Ashley Cargnino; Julie Ann Youssef; Gary Youssef; Biogenic, Inc.; Diagnostic Link Ltd, LLC, et al., No. 5:21-cv-12236-MFL, Eastern District of Michigan (Apr. 29, 2025) — Judgment

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION

Securities and Exchange Commission,

                    Plaintiff,

vs.

Biogenic, Inc., Diagnostic Link Ltd,
LLC, Vital Systems Ltd LLC, BioTek
Holdings LLC, Tek Wellness Inc.,
Capital Care Management LLC,
Susann Ashley Cargnino a/k/a Susann
Ashley Walker a/k/a Ashley Walker,
Zachari Alan Cargnino a/k/a Zach
Alan, Julie Ann Youssef a/k/a Julie
Ann a/k/a Julie Joseph, and Gary
Youssef a/k/a Gary Joseph,

                    Defendants.

                    Case          No.          21-cv-12236
  Hon. Matthew F. Leitman

 FINAL JUDGMENT AGAINST ALL DEFENDANTS

The   Securities   and   Exchange   Commission   (“Commission”)   filed   a
Complaint  on  September  23,  2021,  against  Defendants  Zachari  Alan  Cargnino,
Susann Ashley Cargnino, Julie Youssef, Gary Youssef, Biogenic, Inc., Diagnostic
Link Ltd, LLC, Vital Systems Ltd LLC, BioTek Holdings LLC, Tek Wellness Inc.,
and  Capital  Care  Management  LLC  (“Defendants”).    The  SEC  alleged  that
Defendants  engaged  in  a  fraudulent  scheme,  in  violation  of  Section  10(b)  of  the
Securities  Exchange  Act  of  1934  (“Exchange  Act”)  [15  U.S.C.  78j(b)]  and  Rule

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10b-5 thereunder [17 C.F.R. 240.10b-5] and Section 17(a) of the Securities Act of
1933  (“Securities  Act”)  [15.  U.S.C.  77q(a)],  and  that  they  offered  and  sold
unregistered securities in violation of Section 5 of the Securities Act [15 U.S.C. §
77(a) and (c)].  The Court has previously entered judgment on Defendants’ liability
while  reserving  judgment  on  financial  remedies.    (ECF  Nos.  7,  8,  and  65).
Thereafter, the Commission filed a Motion for Entry of Final Judgment against all
Defendants  pursuant  to  the  Court’s  Order  of  August  1,  2024.    (ECF  No.  66).
Having  considered  the  Commission’s  motion,  its  supporting  material,  and  any
responses filed by Defendants, the Court orders as follows:
I.
IT  IS  HEREBY  ORDERED,  ADJUDGED,  AND  DECREED  that  the
Commission’s  Motion  for  entry  of  final  judgment  against  all  Defendants  is
GRANTED.
II.
IT IS HEREBY 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

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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)  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 17(a) of
the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or

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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  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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendants  Zachari  Alan  Cargnino,  Susann  Ashley  Cargnino,  Julie  Ann  Youssef,
Gary Youssef, Biogenic, Inc., Diagnostic Link Ltd, LLC, Vital Systems Ltd LLC,
BioTek  Holdings  LLC,  and  Tek  Wellness  Inc.,  are  permanently  restrained  and

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enjoined from violating Section 5 of the Securities Act [15 U.S.C. § 77e] 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 [15 U.S.C. § 77h].
IT  IS  FURTHER  ORDERED,  ADJUDGED,  AND  DECREED  that,  as
provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds  the  following  who  receive  actual  notice  of  this  Final  Judgment  by  personal
service  or  otherwise:  (a)  Defendants    Zachari  Alan  Cargnino,  Susann  Ashley
Cargnino,  Julie  Ann  Youssef,  Gary  Youssef,  Biogenic,  Inc.,  Diagnostic  Link  Ltd,
LLC, Vital Systems Ltd LLC, BioTek Holdings LLC, and Tek Wellness Inc., and
their officers, agents, servants, employees, and attorneys; and (b) other persons in
active   concert   or   participation   with   Zachari   Alan   Cargnino,   Susann   Ashley
Cargnino,  Julie  Ann  Youssef,  Gary  Youssef,  Biogenic,  Inc.,  Diagnostic  Link  Ltd,
LLC, Vital Systems Ltd LLC, BioTek Holdings LLC, and Tek Wellness Inc., or with
anyone described in (a).
V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant
to  Section  21(d)(5)  of  the  Exchange  Act  [15  U.S.C.  §  78u(d)(5)],  Defendants  are
permanently restrained and enjoined from directly or indirectly, including, but not
limited to, through any entity owned or controlled by Defendants, participating in
the issuance, purchase, offer, or sale of any security in an unregistered transaction,
including  but  not  limited  to  investment  contracts  or  other  securities  related  to
medical  testing  devices  or  medical  equipment;  provided,  however,  that  such
injunction shall not prevent Zachari Alan Cargnino, Susann Ashley Cargnino, Julie
Ann  Youssef,  and  Gary  Youssef  from  purchasing  or  selling  securities  listed  on  a
national securities exchange for his or her own personal account.

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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)  Defendants’  officers,  agents,  servants,  employees,  and
attorneys; and (b) other persons in active concert or participation with Defendants
or with anyone described in (a).
VI.
Disgorgement, Prejudgment Interest, and Civil Penalties to be Paid
IT  IS  HEREBY  FURTHER  ORDERED,  ADJUDGED,  AND  DECREED
that:
Zachari  Cargnino,  Susann  Cargnino  (together,  the  “Cargninos”),  Biogenic,
Inc., Diagnostic Link Ltd, LLC, Vital Systems Ltd LLC, BioTek Holdings LLC, and
Tek Wellness Inc. are jointly and severally liable for disgorgement of $7,104,521,
representing net profits gained as a result of the conduct alleged in the Complaint,
together with prejudgment interest thereon in the amount of $1,574,657, and Zachari
Cargnino  is  liable  for  a  civil  penalty  in  the  amount  of  $7,104,521,  and  Susann
Cargnino is liable for a civil penalty of $230,465, pursuant to Section 21(d)(3), (5),
and (7) of the Exchange Act [15 U.S.C. § 78u(d)(3), (5), and (7)] and Section 20(d)
of the Securities Act [15 U.S.C. § 77t(d)].

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Julie  Ann  Youssef  and  Gary  Youssef  (the  “Youssefs”)  are  jointly  and
severally liable with each other and with all other Defendants except Capital Care
Management LLC (“Capital Care”) for disgorgement of $522,326, representing net
profits  gained  as  a  result  of  the  conduct  alleged  in  the  Complaint,  together  with
prejudgment interest thereon in the amount of $115,769, and are each liable for civil
penalties in the amount of $460,928, pursuant to Section 21(d)(3), (5), and (7) of the
Exchange  Act  [15  U.S.C.  §  78u(d)(3),  (5),  and  (7)]  and  Section  20(d)  of  the
Securities Act [15 U.S.C. § 77t(d)].
Capital Care is jointly and severally liable with all other Defendants except
the  Youssefs  for  disgorgement  of  $458,860,  representing  net  profits  gained  as  a
result  of  the  conduct  alleged  in  the  Complaint,  together  with  prejudgment  interest
thereon in the amount of $101,700, pursuant to Section 21(d)(3), (5), and (7) of the
Exchange Act [15 U.S.C. § 78u(d)(3), (5), and (7)].
Defendants  shall  satisfy  these  obligations  by  paying  the  above  detailed
amounts 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

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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; the specific Defendant’s name as a defendant 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,
prejudgment interest, and 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.  Defendants 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.

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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 Final 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  the  Cargninos’  or  the  Youssefs’
payment  of  a  civil  penalty  in  this  action  (“Penalty  Offset”).    If  the  court  in  any
Related Investor Action grants such a Penalty Offset, the Defendant(s) 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 Final Judgment.  For purposes of this

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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.
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.
VIII.
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.
      s/Matthew F. Leitman
      MATTHEW F. LEITMAN
                                                            UNITED          STATES          DISTRICT          JUDGE

Dated:  February 20, 2025

I hereby certify that a copy of the foregoing document was served upon the parties
and/or counsel of record on February 20, 2025, by electronic means and/or ordinary
mail.

      s/Holly A. Ryan
      Case Manager
                                                            (313)          234-5126

UNITED STATES DISTRICT COURT 
EASTERN DISTRICT OF MICHIGAN 

SOUTHERN DIVISION 
 

Securities and Exchange Commission, 
 
  Plaintiff, 
 
vs. 
 
Biogenic, Inc., Diagnostic Link Ltd, 
LLC, Vital Systems Ltd LLC, BioTek 
Holdings LLC, Tek Wellness Inc., 
Capital Care Management LLC, 
Susann Ashley Cargnino a/k/a Susann 
Ashley Walker a/k/a Ashley Walker, 
Zachari Alan Cargnino a/k/a Zach 
Alan, Julie Ann Youssef a/k/a Julie 
Ann a/k/a Julie Joseph, and Gary 
Youssef a/k/a Gary Joseph, 
 
  Defendants. 
 

  
 
  Case No. 21-cv-12236 
  Hon. Matthew F. Leitman 
 

  
 FINAL JUDGMENT AGAINST ALL DEFENDANTS  

 
The Securities and Exchange Commission (“Commission”) filed a 

Complaint on September 23, 2021, against Defendants Zachari Alan Cargnino, 

Susann Ashley Cargnino, Julie Youssef, Gary Youssef, Biogenic, Inc., Diagnostic 

Link Ltd, LLC, Vital Systems Ltd LLC, BioTek Holdings LLC, Tek Wellness Inc., 

and Capital Care Management LLC (“Defendants”).  The SEC alleged that 

Defendants engaged in a fraudulent scheme, in violation of Section 10(b) of the 

Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. 78j(b)] and Rule 

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10b-5 thereunder [17 C.F.R. 240.10b-5] and Section 17(a) of the Securities Act of 

1933 (“Securities Act”) [15. U.S.C. 77q(a)], and that they offered and sold 

unregistered securities in violation of Section 5 of the Securities Act [15 U.S.C. § 

77(a) and (c)].  The Court has previously entered judgment on Defendants’ liability 

while reserving judgment on financial remedies.  (ECF Nos. 7, 8, and 65).  

Thereafter, the Commission filed a Motion for Entry of Final Judgment against all 

Defendants pursuant to the Court’s Order of August 1, 2024.  (ECF No. 66).  

Having considered the Commission’s motion, its supporting material, and any 

responses filed by Defendants, the Court orders as follows: 

I. 

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that the 

Commission’s Motion for entry of final judgment against all Defendants is 

GRANTED. 

II. 

IT IS HEREBY 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 

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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) 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 17(a) of 

the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or 

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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 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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendants Zachari Alan Cargnino, Susann Ashley Cargnino, Julie Ann Youssef, 

Gary Youssef, Biogenic, Inc., Diagnostic Link Ltd, LLC, Vital Systems Ltd LLC, 

BioTek Holdings LLC, and Tek Wellness Inc., are permanently restrained and 

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enjoined from violating Section 5 of the Securities Act [15 U.S.C. § 77e] 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 [15 U.S.C. § 77h]. 

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

provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 

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binds the following who receive actual notice of this Final Judgment by personal 

service or otherwise: (a) Defendants  Zachari Alan Cargnino, Susann Ashley 

Cargnino, Julie Ann Youssef, Gary Youssef, Biogenic, Inc., Diagnostic Link Ltd, 

LLC, Vital Systems Ltd LLC, BioTek Holdings LLC, and Tek Wellness Inc., and 

their officers, agents, servants, employees, and attorneys; and (b) other persons in 

active concert or participation with Zachari Alan Cargnino, Susann Ashley 

Cargnino, Julie Ann Youssef, Gary Youssef, Biogenic, Inc., Diagnostic Link Ltd, 

LLC, Vital Systems Ltd LLC, BioTek Holdings LLC, and Tek Wellness Inc., or with 

anyone described in (a). 

V. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant 

to Section 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(5)], Defendants are 

permanently restrained and enjoined from directly or indirectly, including, but not 

limited to, through any entity owned or controlled by Defendants, participating in 

the issuance, purchase, offer, or sale of any security in an unregistered transaction, 

including but not limited to investment contracts or other securities related to 

medical testing devices or medical equipment; provided, however, that such 

injunction shall not prevent Zachari Alan Cargnino, Susann Ashley Cargnino, Julie 

Ann Youssef, and Gary Youssef from purchasing or selling securities listed on a 

national securities exchange for his or her own personal account. 

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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) Defendants’ officers, agents, servants, employees, and 

attorneys; and (b) other persons in active concert or participation with Defendants 

or with anyone described in (a). 

VI. 

Disgorgement, Prejudgment Interest, and Civil Penalties to be Paid 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 

that:  

Zachari Cargnino, Susann Cargnino (together, the “Cargninos”), Biogenic, 

Inc., Diagnostic Link Ltd, LLC, Vital Systems Ltd LLC, BioTek Holdings LLC, and 

Tek Wellness Inc. are jointly and severally liable for disgorgement of $7,104,521, 

representing net profits gained as a result of the conduct alleged in the Complaint, 

together with prejudgment interest thereon in the amount of $1,574,657, and Zachari 

Cargnino is liable for a civil penalty in the amount of $7,104,521, and Susann 

Cargnino is liable for a civil penalty of $230,465, pursuant to Section 21(d)(3), (5), 

and (7) of the Exchange Act [15 U.S.C. § 78u(d)(3), (5), and (7)] and Section 20(d) 

of the Securities Act [15 U.S.C. § 77t(d)]. 

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Julie Ann Youssef and Gary Youssef (the “Youssefs”) are jointly and 

severally liable with each other and with all other Defendants except Capital Care 

Management LLC (“Capital Care”) for disgorgement of $522,326, representing net 

profits gained as a result of the conduct alleged in the Complaint, together with 

prejudgment interest thereon in the amount of $115,769, and are each liable for civil 

penalties in the amount of $460,928, pursuant to Section 21(d)(3), (5), and (7) of the 

Exchange Act [15 U.S.C. § 78u(d)(3), (5), and (7)] and Section 20(d) of the 

Securities Act [15 U.S.C. § 77t(d)]. 

Capital Care is jointly and severally liable with all other Defendants except 

the Youssefs for disgorgement of $458,860, representing net profits gained as a 

result of the conduct alleged in the Complaint, together with prejudgment interest 

thereon in the amount of $101,700, pursuant to Section 21(d)(3), (5), and (7) of the 

Exchange Act [15 U.S.C. § 78u(d)(3), (5), and (7)].   

Defendants shall satisfy these obligations by paying the above detailed 

amounts 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 

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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; the specific Defendant’s name as a defendant 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, 

prejudgment interest, and 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.  Defendants 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. 

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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 Final 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 the Cargninos’ or the Youssefs’ 

payment of a civil penalty in this action (“Penalty Offset”).  If the court in any 

Related Investor Action grants such a Penalty Offset, the Defendant(s) 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 Final Judgment.  For purposes of this 

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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. 

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. 

VIII. 

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. 

      s/Matthew F. Leitman     
      MATTHEW F. LEITMAN 
      UNITED STATES DISTRICT JUDGE 
 
Dated:  February 20, 2025 
 
I hereby certify that a copy of the foregoing document was served upon the parties 
and/or counsel of record on February 20, 2025, by electronic means and/or ordinary 
mail. 
 
      s/Holly A. Ryan     
      Case Manager 
      (313) 234-5126 
 
 

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