SEC v. RARI CAPITAL, INC.; JAI BHAVNANI; JACK LIPSTONE; and DAVID LUCID, No. 2:24-cv-07967-PA, Central District of California (Oct. 2, 2024) — Judgment
raw: SEC v. RARI CAPITAL
SEC v. RARI CAPITAL, No. 2:24-cv-07967-PA (Oct. 2, 2024)
Jack Lipstone consented to a final judgment with the SEC to resolve charges of securities fraud and unregistered broker-dealer activity involving crypto assets.
Jack Lipstone was ordered to pay a total of $43,199.98, consisting of $2,685.30 in disgorgement, $514.68 in prejudgment interest, and a $40,000 civil penalty. The judgment addresses violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act and Section 15(a) of the Exchange Act. The court imposed a five-year prohibition on Lipstone participating in the issuance or sale of crypto assets offered as securities and a five-year ban on serving as an officer or director of reporting issuers.
The Securities and Exchange Commission obtained a final judgment against Jack Lipstone in the Central District of California regarding fraudulent activities involving Rari Capital, Inc. Lipstone consented to the judgment without admitting or denying the allegations of securities fraud and acting as an unregistered broker-dealer. The court ordered him to pay $43,199.98, which includes $40,000 in civil penalties, $2,685.30 in disgorgement, and $514.68 in prejudgment interest. Under the terms of the decree, Lipstone is permanently enjoined from violating the Securities Act and Exchange Act. Furthermore, he is prohibited for five years from participating in the issuance or sale of crypto assets offered as securities. Finally, the judgment imposes a five-year ban on him serving as an officer or director of any reporting issuer.
Extracted insights
- $43K $43,199 $10K–$100K
- $40K $40,000 $10K–$100K
- $3K $2,685 <$10K
- $515 $514.68 <$10K
- person defendant jack lipstone
- court in the united states district court central district of california
- company rari capital, inc.
- agency Securities and Exchange Commission
- court united states district court central district of california
- Securities And Exchange Commission filed a Complaint Defendant Jack Lipstone
- Defendant Jack Lipstone entered a general appearance in the United States District Court Central District of California
- Defendant Jack Lipstone consented to the Court's jurisdiction over Defendant and the subject matter of this action
- Defendant Jack Lipstone waived any right to appeal from this Final Judgment
- United States District Court Central District of California ordered Defendant Jack Lipstone to be permanently restrained and enjoined from violating Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933
- United States District Court Central District of California ordered Defendant Jack Lipstone to be permanently restrained and enjoined from violating Section 15(a) of the Securities Exchange Act of 1934
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ERIN E. WILK (Cal. Bar No. 310214) Email: [email protected] MADIHA M. ZUBERI (Cal. Bar No. 326962) Email: [email protected] DAVID ZHOU (NY Bar No. 4926523) Email: [email protected] Attorneys for Plaintiff Securities and Exchange Commission Monique C. Winkler, Regional Director Jason H. Lee, Associate Regional Director 44 Montgomery Street, Suite 700 San Francisco, CA 94104 (415) 705-2500 (Telephone) (415) 705-2501 (Facsimile) SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. RARI CAPITAL, INC., JAI BHAVNANI, JACK LIPSTONE, and DAVID LUCID, Case No.2:24-cv-7967 FINAL JUDGMENT AS TO DEFENDANT JACK LIPSTONE Defendants. UNITED STATES DISTRICT COURT CENTRAL DISTRI CT OF CALIFORNIA #:88 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The Securities and Exchange Commission having filed a Complaint and Defendant Jack Lipstone (“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 VII); 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 Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. §§ 77q(a)(2) and 77q(a)(3)] 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 obtain money or property by means of any untrue statement of a ma terial 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 (b)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). // // #:89 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 II. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 15(a) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78o(a)], by making use of the mails or any means or instrumentality of interstate commerce to effect any transactions in, or to induce or attempt to induce the purchase or sale of, any security (other than an exempted security or commercial paper, bankers’ acceptances, or commercial bills) unless he is registered with the Commission as a broker or dealer in accordance with Section 15(b) of the Exchange Act [15 U.S.C. § 78o(b)], or associated with a broker or dealer registered with the Commission in accordance with Section 15(b) of the Exchange Act. 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 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), (d)(5)], Defendant is, for a period of five years following the date of entry of this Final Judgment, restrained and enjoined from directly or indirectly, including, but not limited to, through any entity owned or controlled by Defendant, participating in the issuance, purchase, offer, or sale of any crypto assets offered and sold as securities; provided, however, that such injunction shall not prevent Defendant from purchasing or selling securities for his own personal accounts. #:90 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(5)], Defendant is prohibited, for a period of five years following the date of entry of this Final Judgment, 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)]. V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $2,685.30, representing net profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $514.68. The Court finds that sending the disgorged funds to the United States Treasury, as ordered below, is consistent with equitable principles. The Court further imposes a civil penalty in the amount of $40,000.00 pursuant to Section 21(d) of the Exchange Act [15 U.S.C. § 78u(d)] and Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)]. Defendant shall satisfy these obligations by paying $43,199.98 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 #:91 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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; Jack Lipstone 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 shall send the funds paid pursuant to this Final Judgment to the United States Treasury. 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. 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. // // #:92 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 VI. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent of Defendant Jack Lipstone 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. VII. 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 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). VIII. 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. IX. 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: Percy And erson UNITED STATES DISTRICT JUDGE #:93
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ERIN E. WILK (Cal. Bar No. 310214) Email: [email protected] MADIHA M. ZUBERI (Cal. Bar No. 326962) Email: [email protected] DAVID ZHOU (NY Bar No. 4926523) Email: [email protected] Attorneys for Plaintiff Securities and Exchange Commission Monique C. Winkler, Regional Director Jason H. Lee, Associate Regional Director 44 Montgomery Street, Suite 700 San Francisco, CA 94104 (415) 705-2500 (Telephone) (415) 705-2501 (Facsimile) SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. RARI CAPITAL, INC., JAI BHAVNANI, JACK LIPSTONE, and DAVID LUCID, Case No.2:24-cv-7967 FINAL JUDGMENT AS TO DEFENDANT JACK LIPSTONE Defendants. UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA Case 2:24-cv-07967-PA-MAA Document 13 Filed 09/19/24 Page 1 of 6 Page ID #:88 ksalisuleyman JS6 -1- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The Securities and Exchange Commission having filed a Complaint and Defendant Jack Lipstone (“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 VII); 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 Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. §§ 77q(a)(2) and 77q(a)(3)] 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 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 (b) 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). // // Case 2:24-cv-07967-PA-MAA Document 13 Filed 09/19/24 Page 2 of 6 Page ID #:89 https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=FRCP++65%28d%29%282%29&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B77q&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B77q&clientid=USCourts -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 II. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 15(a) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78o(a)], by making use of the mails or any means or instrumentality of interstate commerce to effect any transactions in, or to induce or attempt to induce the purchase or sale of, any security (other than an exempted security or commercial paper, bankers’ acceptances, or commercial bills) unless he is registered with the Commission as a broker or dealer in accordance with Section 15(b) of the Exchange Act [15 U.S.C. § 78o(b)], or associated with a broker or dealer registered with the Commission in accordance with Section 15(b) of the Exchange Act. 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 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), (d)(5)], Defendant is, for a period of five years following the date of entry of this Final Judgment, restrained and enjoined from directly or indirectly, including, but not limited to, through any entity owned or controlled by Defendant, participating in the issuance, purchase, offer, or sale of any crypto assets offered and sold as securities; provided, however, that such injunction shall not prevent Defendant from purchasing or selling securities for his own personal accounts. Case 2:24-cv-07967-PA-MAA Document 13 Filed 09/19/24 Page 3 of 6 Page ID #:90 https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=FRCP++65%28d%29%282%29&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B78o&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B%2B78o&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B%2B78o&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B77t&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B78u&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B78u&clientid=USCourts -3- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(5)], Defendant is prohibited, for a period of five years following the date of entry of this Final Judgment, 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)]. V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $2,685.30, representing net profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $514.68. The Court finds that sending the disgorged funds to the United States Treasury, as ordered below, is consistent with equitable principles. The Court further imposes a civil penalty in the amount of $40,000.00 pursuant to Section 21(d) of the Exchange Act [15 U.S.C. § 78u(d)] and Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)]. Defendant shall satisfy these obligations by paying $43,199.98 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 Case 2:24-cv-07967-PA-MAA Document 13 Filed 09/19/24 Page 4 of 6 Page ID #:91 https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=FRCP++65%28d%29%282%29&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B78u&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B78l&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2Bu%2Es%2Ec%2E%2B%2B%2B%2B78o&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2Bu%2Es%2Ec%2E%2B%2B%2B%2B78o&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B78u&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=15%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B77t&clientid=USCourts -4- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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; Jack Lipstone 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 shall send the funds paid pursuant to this Final Judgment to the United States Treasury. 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. 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. // // Case 2:24-cv-07967-PA-MAA Document 13 Filed 09/19/24 Page 5 of 6 Page ID #:92 https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=28%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B3001&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=28%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B1961&clientid=USCourts -5- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 VI. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent of Defendant Jack Lipstone 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. VII. 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 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). VIII. 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. IX. 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: Percy Anderson UNITED STATES DISTRICT JUDGE Case 2:24-cv-07967-PA-MAA Document 13 Filed 09/19/24 Page 6 of 6 Page ID #:93 https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=11%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B523&clientid=USCourts https://www.westlaw.com/Link/Document/FullText?rs=USCLink&vr=3.0&findType=Y&cite=11%2B%2Bu%2Es%2Ec%2E%2B%2B%2B%2B523&clientid=USCourts PercyAnderson Date PercyAnderson 2