SEC v. Petar Dimitrov Mihaylov, No. 1:22-cv-03089, Southern District of New York (Dec. 19, 2024) — Judgment

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

SECURITIES AND EXCHANGE
COMMISSION,
    Plaintiff,
 v.

RONALD BAUER A/K/A RONALD J.
BAUER and RONALD JACOB BAUER,
CRAIG JAMES AURINGER, ALON
FRIEDLANDER, MASSIMILIANO
(“MAX”) POZZONI, DANIEL MARK
FERRIS, PETAR DMITROV
MIHAYLOV, DAVID SIDOO and ADAM
CHRISTOPHER KAMBEITZ,

    Defendants.

Case No. 1:22-cv-3089

FINAL JUDGMENT AS TO DEFENDANT PETAR DMITROV MIHAYLOV

The Securities and Exchange Commission having filed a Complaint and Defendant Petar
Dimitrov Mihaylov 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.
1

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

1
 Although the caption of this action refers to Mihaylov’s middle name as Dmitrov, as footnoted in paragraph 1 of
the Consent, the correct spelling of his middle name is “Dimitrov.”

promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of
interstate commerce, or of the mails, or of any facility of any national securities exchange, in
connection with the purchase or sale of any security:
(a) to employ any device, scheme, or artifice to defraud;
(b) to make any untrue statement of a material fact or to omit to state a material fact
 necessary in order to make the statements made, in the light of the circumstances
 under which they were made, not misleading; or
(c) to engage in any act, practice, or course of business which operates or would
 operate as a fraud or deceit upon any person.
 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this 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
 (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 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 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 FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to Section
20(b) of the Securities Act [15 U.S.C. § 77t(b)] and Sections 21(d)(1) and 21(d)(5) of the
Exchange Act [15 U.S.C. § 78u(d)(1) and (5)], Defendant is permanently restrained and enjoined
from directly or indirectly, including but not limited to, through any entity Defendant owns or
controls, engaging in any activity for the purpose of inducing or attempting to induce the
purchase or sale of any security; causing any person or entity to engage in any activity for the
purpose of inducing or attempting to induce the purchase or sale of any security; or deriving
compensation from any activity engaged in for the purpose of inducing or attempting to induce

the purchase or sale of any security; unless that security is: (1) listed on a national securities
exchange; and (2) has had a market capitalization of at least $50,000,000 for 90 consecutive
days.
 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 FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to Section
21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and Section 20(e) of the Securities Act [15
U.S.C. § 77t(e)]], Defendant is prohibited from acting as an officer or director of any issuer that
has a class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l]
or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C.
§ 78o(d)].
VI.
 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is permanently barred from participating in an offering of penny stock, including engaging in
activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing or
attempting to induce the purchase or sale of any penny stock.  A penny stock is any equity
security that has a price of less than five dollars, except as provided in Rule 3a51-1 under the
Exchange Act [17 C.F.R. 240.3a51-1].

VII.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is liable for disgorgement of $1,011,600, representing net profits gained as a result of the conduct
alleged in the Complaint, together with prejudgment interest thereon in the amount of $304,466,
for a total of $1,316,066, and a civil penalty in the amount of $1,011,600 pursuant to Section
20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15
U.S.C. § 78u(d)(3)].  Defendant shall satisfy this obligation by paying $2,327,666 to the
Securities and Exchange Commission within ten 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; Defendant Petar Dimitrov Mihaylov 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 penalties, disgorgement and
prejudgment interest by using all collection procedures authorized by law (including, insofar as
civil penalties is concerned, the Federal Debt Collection Procedures Act, 28 U.S.C. § 3001 et
seq.).  Such collection procedures include, but are not limited to, moving for civil contempt at
any time after 10 days following entry of this Final Judgment.  Defendant shall pay post
judgment interest on any amounts due after 10 days following 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 SEC 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 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
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 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 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 of
Defendant Petar Dimitrov Mihaylov (“Consent”) is incorporated herein with the same force and
effect as if fully set forth herein.
IX.

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

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.
____________________________________
UNITED STATES DISTRICT JUDGE

Dated:  ______________
December 18, 2024
, _____

-1-  
   
 

 

 
UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF NEW YORK 
 
 
SECURITIES AND EXCHANGE 
COMMISSION, 
    Plaintiff, 
 v. 
 
RONALD BAUER A/K/A RONALD J. 
BAUER and RONALD JACOB BAUER, 
CRAIG JAMES AURINGER, ALON 
FRIEDLANDER, MASSIMILIANO 
(“MAX”) POZZONI, DANIEL MARK 
FERRIS, PETAR DMITROV 
MIHAYLOV, DAVID SIDOO and ADAM 
CHRISTOPHER KAMBEITZ, 
 
    Defendants. 
 

 
 

 
 
 
 
Case No. 1:22-cv-3089 

 
 
 

 
 

FINAL JUDGMENT AS TO DEFENDANT PETAR DMITROV MIHAYLOV 

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

Dimitrov Mihaylov 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.1   

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 

 
1  Although the caption of this action refers to Mihaylov’s middle name as Dmitrov, as footnoted in paragraph 1 of 
the Consent, the correct spelling of his middle name is “Dimitrov.” 

Case 1:22-cv-03089-AS     Document 89-3     Filed 12/16/24     Page 1 of 9Case 1:22-cv-03089-AS     Document 90     Filed 12/18/24     Page 1 of 9

http://www.google.com/search?q=15+u.s.c.++78j(b)


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

interstate commerce, or of the mails, or of any facility of any national securities exchange, in 

connection with the purchase or sale of any security: 

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

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

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

 under which they were made, not misleading; or 

(c) to engage in any act, practice, or course of business which operates or would 

 operate as a fraud or deceit upon any person. 

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

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 

receive actual notice of this 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; 

Case 1:22-cv-03089-AS     Document 89-3     Filed 12/16/24     Page 2 of 9Case 1:22-cv-03089-AS     Document 90     Filed 12/18/24     Page 2 of 9

http://www.google.com/search?q=FRCP+65(d)(2)
http://www.google.com/search?q=17+c.f.r.++240.10b-5
http://www.google.com/search?q=15+u.s.c.++77q(a)


 
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(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) 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 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 

Case 1:22-cv-03089-AS     Document 89-3     Filed 12/16/24     Page 3 of 9Case 1:22-cv-03089-AS     Document 90     Filed 12/18/24     Page 3 of 9

http://www.google.com/search?q=FRCP+65(d)(2)
http://www.google.com/search?q=15+u.s.c.+++77e
http://www.google.com/search?q=15+u.s.c.+++77e


 
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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) 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 FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to Section 

20(b) of the Securities Act [15 U.S.C. § 77t(b)] and Sections 21(d)(1) and 21(d)(5) of the 

Exchange Act [15 U.S.C. § 78u(d)(1) and (5)], Defendant is permanently restrained and enjoined 

from directly or indirectly, including but not limited to, through any entity Defendant owns or 

controls, engaging in any activity for the purpose of inducing or attempting to induce the 

purchase or sale of any security; causing any person or entity to engage in any activity for the 

purpose of inducing or attempting to induce the purchase or sale of any security; or deriving 

compensation from any activity engaged in for the purpose of inducing or attempting to induce 

Case 1:22-cv-03089-AS     Document 89-3     Filed 12/16/24     Page 4 of 9Case 1:22-cv-03089-AS     Document 90     Filed 12/18/24     Page 4 of 9

http://www.google.com/search?q=FRCP+65(d)(2)
http://www.google.com/search?q=15+u.s.c.++77h
http://www.google.com/search?q=15+u.s.c.++77t(b)
http://www.google.com/search?q=15+u.s.c.++78u(d)(1)
http://www.google.com/search?q=15+u.s.c.+78u(5)


 
 -5-  
   
 

 

the purchase or sale of any security; unless that security is: (1) listed on a national securities 

exchange; and (2) has had a market capitalization of at least $50,000,000 for 90 consecutive 

days. 

 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 FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to Section 

21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and Section 20(e) of the Securities Act [15 

U.S.C. § 77t(e)]], Defendant is prohibited from acting as an officer or director of any issuer that 

has a class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l] 

or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. 

§ 78o(d)]. 

VI. 

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

is permanently barred from participating in an offering of penny stock, including engaging in 

activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing or 

attempting to induce the purchase or sale of any penny stock.  A penny stock is any equity 

security that has a price of less than five dollars, except as provided in Rule 3a51-1 under the 

Exchange Act [17 C.F.R. 240.3a51-1]. 

Case 1:22-cv-03089-AS     Document 89-3     Filed 12/16/24     Page 5 of 9Case 1:22-cv-03089-AS     Document 90     Filed 12/18/24     Page 5 of 9

http://www.google.com/search?q=r.+240.3a51-1
http://www.google.com/search?q=FRCP+65(d)(2)
http://www.google.com/search?q=15+u.s.c.++78u(d)(2)
http://www.google.com/search?q=15++u.s.c.++77t(e)
http://www.google.com/search?q=15++u.s.c.++77t(e)
http://www.google.com/search?q=15+u.s.c.++78l
http://www.google.com/search?q=15+u.s.c.+++78o(d)
http://www.google.com/search?q=15+u.s.c.+++78o(d)


 
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VII. 

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

is liable for disgorgement of $1,011,600, representing net profits gained as a result of the conduct 

alleged in the Complaint, together with prejudgment interest thereon in the amount of $304,466, 

for a total of $1,316,066, and a civil penalty in the amount of $1,011,600 pursuant to Section 

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

U.S.C. § 78u(d)(3)].  Defendant shall satisfy this obligation by paying $2,327,666 to the 

Securities and Exchange Commission within ten 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; Defendant Petar Dimitrov Mihaylov 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 

Case 1:22-cv-03089-AS     Document 89-3     Filed 12/16/24     Page 6 of 9Case 1:22-cv-03089-AS     Document 90     Filed 12/18/24     Page 6 of 9

http://www.sec.gov/about/offices/ofm.htm
http://www.google.com/search?q=15+u.s.c.++77t(d)
http://www.google.com/search?q=15++u.s.c.++78u(d)(3)
http://www.google.com/search?q=15++u.s.c.++78u(d)(3)


 
 -7-  
   
 

 

of the funds shall be returned to Defendant.  

The Commission may enforce the Court’s judgment for penalties, disgorgement and 

prejudgment interest by using all collection procedures authorized by law (including, insofar as 

civil penalties is concerned, the Federal Debt Collection Procedures Act, 28 U.S.C. § 3001 et 

seq.).  Such collection procedures include, but are not limited to, moving for civil contempt at 

any time after 10 days following entry of this Final Judgment.  Defendant shall pay post 

judgment interest on any amounts due after 10 days following 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 SEC 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 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 

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 

Case 1:22-cv-03089-AS     Document 89-3     Filed 12/16/24     Page 7 of 9Case 1:22-cv-03089-AS     Document 90     Filed 12/18/24     Page 7 of 9

http://www.google.com/search?q=28+u.s.c.++3001
http://www.google.com/search?q=28+u.s.c.++1961


 
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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 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 of 

Defendant Petar Dimitrov Mihaylov (“Consent”) is incorporated herein with the same force and 

effect as if fully set forth herein. 

IX.  
 

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

____________________________________ 
UNITED STATES DISTRICT JUDGE 

Case 1:22-cv-03089-AS     Document 89-3     Filed 12/16/24     Page 9 of 9

Dated:  ______________December 18, 2024, _____ 

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