United States District Court, C.D. California, Western Division
FINAL JUDGMENT AS TO DEFENDANT STEPHEN B.
WHEATLEY
The
Securities and Exchange Commission having filed a Complaint
and Defendant Stephen B. Wheatley ("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 VI); 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 5
of the Securities Act of 1933 ("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).
II.
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 Securities Exchange Act of 1934 [17 C.F.R.
§ 240.3a51-1]
III.
IT IS
FURTHER Ordered, Adjudged, and Decreed that Defendant is
liable for disgorgement of $2, 364, 124.86, representing
funds received as a result of the conduct alleged in the
Complaint, together with prejudgment interest thereon in the
amount of $385, 875.14. Defendant shall satisfy this
obligation by paying $2, 750, 000 to the Securities and
Exchange Commission pursuant to the terms of the payment
schedule set forth in paragraph IV below.
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
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