SEC v. 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)
David Lucid entered a final judgment with the SEC, agreeing to permanent injunctions and a five-year ban on crypto asset sales and officer roles to resolve securities fraud allegations.
The SEC obtained a final judgment against David Lucid for violations of the Securities Act and the Exchange Act involving fraudulent transactions and unregistered broker-dealer activity. Lucid is required to pay a total of $45,208.92, which includes $4,371.12 in disgorgement, $837.80 in prejudgment interest, and a $40,000 civil penalty. The settlement also imposes a five-year prohibition on participating in the issuance or sale of crypto assets offered as securities and from serving as an officer or director of a reporting issuer.
The Securities and Exchange Commission obtained a final judgment against defendant David Lucid regarding allegations of fraud and unregistered broker-dealer activity. Lucid consented to the judgment without admitting or denying the allegations, agreeing to permanent injunctions against future securities fraud and violations of the Exchange Act. The court imposed a five-year ban prohibiting Lucid from participating in the issuance, purchase, or sale of crypto assets offered as securities. Additionally, he is barred from serving as an officer or director of any reporting issuer for a period of five years. To resolve the matter, Lucid is ordered to pay $4,371.12 in disgorgement, $837.80 in prejudgment interest, and a $40,000 civil penalty, totaling $45,208.92. This judgment also establishes that the resulting debt is non-dischargeable in bankruptcy proceedings.
Extracted insights
- $45K $45,208 $10K–$100K
- $40K $40,000 $10K–$100K
- $4K $4,371 <$10K
- $838 $837.80 <$10K
- person against defendant david lucid
- person defendant david lucid
- agency the securities and exchange commission
- The Securities And Exchange Commission Filed a Complaint Against Defendant David Lucid
- Defendant David Lucid Entered a General Appearance In The Case
- Defendant David Lucid Consented To Jurisdiction By The Court Over The Subject Matter Of This Action
- Defendant David Lucid Consented To Entry Of This Final Judgment
- Defendant David Lucid Waived Findings Of Fact And Conclusions Of Law
- Defendant David Lucid Waived Any Right To Appeal From This Final Judgment
- The Court Ordered And Adjudged That Defendant Is Permanently Restrained And Enjoined From Violating Section 17(a)(3) Of The Securities Act Of 1933
- The Court Ordered And Adjudged That The Foregoing Paragraph Also Binds Defendant’S Officers, Agents, Servants, Employees, And Attorneys Who Receive Actual Notice Of This Final Judgment
- The Court Ordered And Adjudged That The Foregoing Paragraph Also Binds Other Persons In Active Concert Or Participation With Defendant Or With Anyone Described In (a)
- The Court Ordered And Adjudged That Defendant Is Permanently Restrained And Enjoined From Violating Section 15(a) Of The Securities Exchange Act Of 1934
- The Court Ordered And Adjudged That The Foregoing Paragraph Also Binds Defendant’S Officers, Agents, Servants, Employees, And Attorneys Who Receive Actual Notice Of This Final Judgment
- The Court Ordered And Adjudged That The Foregoing Paragraph Also Binds Other Persons In Active Concert Or Participation With Defendant Or With Anyone Described In (a)
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-7 967 FINAL JUDGMENT AS TO DEFENDANT DAVID LUCID Defendants. UNITED STATES DISTRICT COURT CENTRAL DIST RICT OF CALIFORNIA #:94 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 David Lucid (“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 Section 17(a)(3) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 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, 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). 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’ #:95 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 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. 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). #:96 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 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 $4,371.12, representing net profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $837.80. 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 $45,208.92 to the Securities and Exchange Commission within 30 days after entry of this Final Judgment. Defendant may transmit payment electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a bank account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified check, bank cashier’s check, or United States postal money order payable to the Securities and Exchange Commission, which shall be delivered or mailed to #:97 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 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; David Lucid 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. VI. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent of Defendant David Lucid 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. #:98 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 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 An derson UNITED STATES DISTRICT JUDGE #:99
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 DAVID LUCID Defendants. UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA Case 2:24-cv-07967-PA-MAA Document 14 Filed 09/19/24 Page 1 of 6 Page ID #:94 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 David Lucid (“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 Section 17(a)(3) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 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, 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). 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’ Case 2:24-cv-07967-PA-MAA Document 14 Filed 09/19/24 Page 2 of 6 Page ID #:95 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%2B%2B%2B78o&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 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. 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 14 Filed 09/19/24 Page 3 of 6 Page ID #:96 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=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%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 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 $4,371.12, representing net profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $837.80. 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 $45,208.92 to the Securities and Exchange Commission within 30 days after entry of this Final Judgment. Defendant may transmit payment electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a bank account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified check, bank cashier’s check, or United States postal money order payable to the Securities and Exchange Commission, which shall be delivered or mailed to Case 2:24-cv-07967-PA-MAA Document 14 Filed 09/19/24 Page 4 of 6 Page ID #:97 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 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; David Lucid 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. VI. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent of Defendant David Lucid 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. Case 2:24-cv-07967-PA-MAA Document 14 Filed 09/19/24 Page 5 of 6 Page ID #:98 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 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 14 Filed 09/19/24 Page 6 of 6 Page ID #:99 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