United States District Court, S.D. California
September 29, 2005.
SECURITIES AND EXCHANGE COMMISSION, Plaintiff,
RICHARD A. MAY, Defendant.
The opinion of the court was delivered by: JAMES STIVEN, Magistrate Judge
FINAL JUDGMENT AS TO DEFENDANT RICHARD A. MAY
The Securities and Exchange Commission having filed a
Complaint; Defendant Richard A. May having entered a general
appearance, consented to the Court's jurisdiction over him, the
subject matter of this action, and to the entry of the Order of
Permanent Injunction without admitting or denying the allegations
of the Complaint (Docket Nos. 32 & 33); and the Court having held
a bench trial on September 2, 2005, and issued an Opinion and
Order with regard thereto dated September 20, 2005 (Docket No.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
liable for disgorgement of $472,402.61, representing profits
gained as a result of the conduct alleged in the Complaint. In
addition to disgorgement, Defendant shall pay a civil penalty of
$5,000.00 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 $477,402.61 within ten business days to the Clerk of the
Court, together with a cover letter identifying Richard A. May as
a defendant in this action; setting forth the title and civil
action number of this action and the name of this Court; and
specifying that payment is made pursuant to this Final Judgment.
Defendant shall simultaneously transmit photocopies of each such
payment and letter to the Commission's counsel in this action.
Defendant relinquishes all legal and equitable right, title, and
interest in such payments, and no part of the funds shall be
returned to Defendant.*fn1 The Clerk shall deposit the funds
into an interest bearing account with the Court Registry
Investment System ("CRIS") or any other type of interest bearing
account that is utilized by the Court. These funds, together with
any interest and income earned thereon (collectively, the
"Fund"), shall be held in the interest bearing account until
further order of the Court. In accordance with 28 U.S.C. § 1914
and the guidelines set by the Director of the Administrative
Office of the United States Courts, the Clerk is directed,
without further order of this Court, to deduct from the income
earned on the money in the Fund a fee equal to ten percent of the
income earned on the Fund. Such fee shall not exceed that
authorized by the Judicial Conference of the United States. The
Commission may propose a plan to distribute the Fund subject to the Court's approval. Defendant shall pay
post-judgment interest on any delinquent amounts pursuant to
28 USC § 1961.
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)],
Defendant is prohibited, for a period of 12 months 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. § 781] or that is required to file reports pursuant to Section
15(d) of the Exchange Act [15 U.S.C. § 78o(d)].
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is
prohibited, for a period of 18 months following the date of entry
of this Final Judgment, 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].
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Order of
Permanent Injunction (Docket No. 33) is incorporated herein with
the same force and effect as if fully set forth herein, and that
Defendant shall comply with all of the provisions stated therein. V.
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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