SEC v. Crystal World Holdings, Inc.; The New Sports Economy Institute; and Christopher Paul Rabalais, No. 1:19-cv-02490, District of Columbia (Feb. 10, 2025) — Judgment

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA

SECURITIES AND EXCHANGE
COMMISSION,

Plaintiff,

v. Civil Action No. 1:19-cv-02490 (CJN)
CRYSTAL WORLD HOLDINGS, INC., et
al.,

Defendants.

ORDER AND FINAL JUDGMENT
AS TO ALL DEFENDANTS

THIS  MATTER  is  before  the  Court  on  Plaintiff  Securities  and  Exchange  Commission’s
Motion  for  Final  Judgment  as  to  Defendants  Crystal  World  Holdings,  Inc.  (“CWH”),  The  New
Sports  Economy  Institute  (“NSEI”),  and  Christopher  Paul  Rabalais  (“Rabalais”)  (collectively,
“Defendants”), ECF No. 66.
The  Court,  having  entered  prior  partial  Judgments  against  Defendants  on  February  20,
2024 (ECF Nos. 64-65), and having considered all the evidence and arguments presented by the
parties  on  the  present  Motion  and  all  matters  of  record,  and  being  otherwise  fully  advised,
HEREBY  GRANTS  IN  PART the  Motion  and  enters  Final  Judgment  against  Defendants  as
follows:
I.

IT
 IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants are
permanently restrained and enjoined from violating Section 5 of the Securities Act of 1933 (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 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).
II.

IT    IS    HEREBY    FURTHER    ORDERED,    ADJUDGED,    AND DECREED    that

Defendants are permanently restrained and enjoined from violating Section 17(a) of 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  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 pursuant to

Section 21(d)(5) of the Securities Exchange Act of 1934 [15 U.S.C. § 78u(d)(5)], and Section 20(b)
of  the  Securities  Act  [15  U.S.C.  § 77t(b)],  Defendants  are  permanently  restrained  and  enjoined
from directly or indirectly, including, but not limited to, through any entity owned or controlled
by any  of  them,  participating  in  the  issuance,  purchase,  offer,  or  sale of  any  security  in  an
unregistered  offering  by  an  issuer,  provided,  however,  that  such  injunction  shall  not  prevent
Rabalais  from  purchasing  or  selling  securities  for  his  own  personal  account  or  accounts  that  he
controls.

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).
IV.

IT    IS    HEREBY    FURTHER    ORDERED,    ADJUDGED,    AND DECREED    that

Defendants  are  liable,  jointly  and  severally,  for  disgorgement  of  $1,169,039,  representing  net
profits  gained  as  a  result  of  the  conduct  alleged  in  the  Complaint,  together  with  prejudgment
interest  thereon  in  the  amount  of  $299,517. Defendants  shall  satisfy  this  obligation by  paying
$1,468,556 to the Commission within 30 days after entry of this Final Judgment.

V.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Rabalais is
further  liable  for  a  civil  penalty  in  the  amount  of  $223,229 pursuant  to  Section  20(d)  of  the
Securities Act [15 U.S.C. § 77t(d)]. Rabalais shall satisfy this obligation by paying $223,229 to
the Commission within 30 days after entry of this Final Judgment.
VI.

IT  IS  HEREBY  FURTHER  ORDERED,  ADJUDGED,  AND DECREED  that  CWH  is

further  liable  for  a  civil  penalty  in  the  amount  of  $100,000 pursuant  to  Section  20(d)  of  the
Securities Act [15 U.S.C. § 77t(d)]. CWH shall satisfy this obligation by paying $100,000 to the
Commission within 30 days after entry of this Final Judgment.
VII.

IT  IS  HEREBY  FURTHER  ORDERED,  ADJUDGED,  AND DECREED  that  NSEI  is

further liable  for a  civil penalty  in  the  amount  of  $100,000 pursuant  to  Section  20(d)  of  the

Securities Act [15 U.S.C. § 77t(d)]. NSEI shall satisfy this obligation by paying $100,000 to  the
Commission within 30 days after entry of this Final Judgment.
VIII.
IT    IS    HEREBY    FURTHER    ORDERED,    ADJUDGED,    AND DECREED    that
Defendants   may   transmit   payment   of   the   amounts   due   under   paragraphs   IV-VII   above
electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions
upon request. Payment also may be made directly from a bank account via Pay.gov through the
SEC website at http://www.sec.gov/about/offices/ofm.htm. Defendants also may 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; each Defendant’s name as a defendant in this action; and specifying that payment is
made pursuant to this Final Judgment.
Defendants  simultaneously  shall  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  and  prejudgment
interest by using all collection procedures authorized by law, including, but not limited to, moving
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.
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.
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  penalties,  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 Defendants’ payment of civil
penalties  in  this  action  (“Penalty  Offset”).  If  the  court  in  any  Related  Investor  Action  grants
such a Penalty Offset, Defendants 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

CARL J. NICHOLS
United States District Judge
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 penalties imposed in this Final Judgment. For purposes of this 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.
IX.

IT IS HEREBY 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 Rabalais, and further, any debt
for disgorgement, prejudgment interest, civil penalty or other amounts due by Rabalais 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 Rabalais 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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that this Court
shall retain jurisdiction of this matter and of Defendants for the purposes of enforcing the terms of
this Final Judgment.

DATE:  January 28, 2025

UNITED STATES DISTRICT COURT 
FOR THE DISTRICT OF COLUMBIA 

 

SECURITIES AND EXCHANGE 
COMMISSION, 

 

Plaintiff,  

v. Civil Action No. 1:19-cv-02490 (CJN) 

CRYSTAL WORLD HOLDINGS, INC., et 
al., 

 

Defendants.  

 
ORDER AND FINAL JUDGMENT 

AS TO ALL DEFENDANTS 
 

THIS MATTER is before the Court on Plaintiff Securities and Exchange Commission’s 

Motion for Final Judgment as to Defendants Crystal World Holdings, Inc. (“CWH”), The New 

Sports Economy Institute (“NSEI”), and Christopher Paul Rabalais (“Rabalais”) (collectively, 

“Defendants”), ECF No. 66. 

The Court, having entered prior partial Judgments against Defendants on February 20, 

2024 (ECF Nos. 64-65), and having considered all the evidence and arguments presented by the 

parties on the present Motion and all matters of record, and being otherwise fully advised, 

HEREBY GRANTS IN PART the Motion and enters Final Judgment against Defendants as 

follows: 

I. 
 

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants are 

permanently restrained and enjoined from violating Section 5 of the Securities Act of 1933 (the 

“Securities Act”) [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable 

exemption: 

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(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 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). 

II. 
 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 
 
Defendants are permanently restrained and enjoined from violating Section 17(a) of the Securities 

Act [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or 

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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). 

III. 
 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to 
 
Section 21(d)(5) of the Securities Exchange Act of 1934 [15 U.S.C. § 78u(d)(5)], and Section 20(b) 

of the Securities Act [15 U.S.C. § 77t(b)], Defendants are permanently restrained and enjoined 

from directly or indirectly, including, but not limited to, through any entity owned or controlled 

by any of them, participating in the issuance, purchase, offer, or sale of any security in an 

unregistered offering by an issuer, provided, however, that such injunction shall not prevent 

Rabalais from purchasing or selling securities for his own personal account or accounts that he 

controls. 

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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 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 are liable, jointly and severally, for disgorgement of $1,169,039, representing net 

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

interest thereon in the amount of $299,517. Defendants shall satisfy this obligation by paying 

$1,468,556 to the Commission within 30 days after entry of this Final Judgment. 
 

V. 
 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Rabalais is 

further liable for a civil penalty in the amount of $223,229 pursuant to Section 20(d) of the 

Securities Act [15 U.S.C. § 77t(d)]. Rabalais shall satisfy this obligation by paying $223,229 to 

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

VI. 
 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that CWH is 
 
further liable for a civil penalty in the amount of $100,000 pursuant to Section 20(d) of the 

Securities Act [15 U.S.C. § 77t(d)]. CWH shall satisfy this obligation by paying $100,000 to the 

Commission within 30 days after entry of this Final Judgment. 

VII. 
 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that NSEI is 
 
further liable for a civil penalty in the amount of $100,000 pursuant to Section 20(d) of the 

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Securities Act [15 U.S.C. § 77t(d)]. NSEI shall satisfy this obligation by paying $100,000 to the 

Commission within 30 days after entry of this Final Judgment. 

VIII. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendants may transmit payment of the amounts due under paragraphs IV-VII above 

electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions 

upon request. Payment also may be made directly from a bank account via Pay.gov through the 

SEC website at http://www.sec.gov/about/offices/ofm.htm. Defendants also may 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; each Defendant’s name as a defendant in this action; and specifying that payment is 

made pursuant to this Final Judgment. 

Defendants simultaneously shall 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 and prejudgment 

interest by using all collection procedures authorized by law, including, but not limited to, moving 

for civil contempt at any time after 30 days following entry of this Final Judgment. 

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


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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. 

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. 

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 penalties, 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 Defendants’ payment of civil 

penalties in this action (“Penalty Offset”). If the court in any Related Investor Action grants 

such a Penalty Offset, Defendants 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 

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CARL J. NICHOLS 
United States District Judge 

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 penalties imposed in this Final Judgment. For purposes of this 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. 

IX. 
 

IT IS HEREBY 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 Rabalais, and further, any debt 

for disgorgement, prejudgment interest, civil penalty or other amounts due by Rabalais 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 Rabalais 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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that this Court 

shall retain jurisdiction of this matter and of Defendants for the purposes of enforcing the terms of 

this Final Judgment. 

 
 

 

DATE: January 28, 2025 

 
 

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	ORDER AND FINAL JUDGMENT AS TO ALL DEFENDANTS
	I.
	II.
	III.
	IV.
	V.
	VI.
	VII.
	VIII.
	IX.
	X.