Post by Twist Capper on May 21, 2008 12:51:07 GMT -6
JOHN M. McCOY III, Cal. Bar No. 166244
E-mail: mccoyj@sec.gov
MOLLY M. WHITE, Cal. Bar No. 171448
E-mail: whitem@sec.gov
LESLIE A. HAKALA, Cal. Bar No. 199414
E-mail: hakalal@sec.gov
Attorneys for Plaintiff
Securities and Exchange Commission
Rosalind R. Tyson, Acting Regional Director
Andrew Petillon, Associate Regional Director
5670 Wilshire Boulevard, 11th Floor
Los Angeles, California 90036-3648
Telephone: (323) 965-3998
Facsimile: (323) 965-3908
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
vs.
CMKM DIAMONDS, INC., URBAN
CASAVANT, JOHN EDWARDS,
GINGER GUTIERREZ, JAMES
KINNEY, ANTHONY TOMASSO,
KATHLEEN TOMASSO, 1ST
GLOBAL STOCK TRANSFER LLC,
HELEN BAGLEY, NEVWEST
SECURITIES CORPORATION,
DARYL ANDERSON, SERGEY
RUMYANTSEV, ANTHONY
SANTOS, and BRIAN DVORAK,
Defendants.
Case No. 2:08-cv-00437-LRH-RJJ
[PROPOSED] JUDGMENT OF PERMANENT INJUNCTION
AND OTHER RELIEF AGAINST DEFENDANT JOHN EDWARDS
Case 2:08-cv-00437-LRH-RJJ Document 41 Filed 05/20/2008 Page 1 of 4
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Plaintiff Securities and Exchange Commission (“Commission”) having
filed a Complaint (“Complaint”) and Defendant John Edwards
(“Edwards”) having waived service of a Summons and the
Complaint; entered a general appearance; consented to the
Court’s jurisdiction over Edwards and the subject matter of this
action; consented to entry of this Judgment without admitting or
denying the allegations of the Complaint (except as to
jurisdiction); waived findings of fact and conclusions of law; and
waived any right to appeal from this Judgment:
I.
IT IS ORDERED, ADJUDGED, AND DECREED that EDWARDS and his
agents, servants, employees, attorneys, and all persons in active
concert or participation with them who receive actual notice of
this Judgment by personal service or otherwise are 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 Case 2:08-cv-00437-LRH-RJJ Document 41
Filed 05/20/2008
Page 2 of 4
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I.
effective date of the registration statement) any public proceeding
or examination under Section 8 of the Securities Act, 15 U.S.C. §
77h.
II.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Edwards
is permanently and unconditionally bared from participation in
any 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 Edwards
shall pay disgorgement of ill-gotten gains, prejudgment interest
thereon, and a civil penalty pursuant to Section 20(d) of the
Securities Act, 15 U.S.C. § 77t(d). The Court shall determine the
amounts of the disgorgement and civil penalty upon motion of
the Securities and Exchange Commission (“Commission”).
Prejudgment interest shall be calculated pursuant to 28 U.S.C. §
1961 from March 5, 2003. In connection with the Commission’s
motion for disgorgement and/or civil penalties, and at any
hearing held on such a motion: (a) Edwards will be precluded
from arguing that he did not violate the federal securities laws as
alleged in the Complaint; (b) Edwards may not challenge the
validity of this Consent or the Judgment; (c) solely for the
purposes of such motion, the allegations of the Complaint shall
be accepted as and deemed true by the Court; and (d) the Court
may determine the issues raised in the motion on the basis of
affidavits, declarations, excerpts of sworn deposition or
investigative testimony, and documentary evidence, without
regard to the standards for summary judgment contained in Rule
56(c) of the Federal Rules of Civil Procedure. In connection
Case 2:08-cv-00437-LRH-RJJ Document 41 Filed 05/20/2008
Page 3 of 4
with the Commission’s motion for disgorgement and/or civil
penalties, the parties may take discovery, including discovery
from appropriate non-parties.
IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the
provisions of the Consent filed concurrently with this Judgment
are incorporated herein with the same force and effect as if fully
set forth herein, and that Edwards shall comply with all of the
undertakings and agreements set forth 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 Judgment.
VI.
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 Judgment forthwith and without further notice.
Dated: ____________, ______
________________________________
THE HONORABLE LARRY R. HICKS
UNITED STATES DISTRICT JUDGE
May 20, 2008
Case 2:08-cv-00437-LRH-RJJ Document 41 Filed 05/20/2008 Page 4 of 4