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Securities and Exchange Commission v. Imaging3, Inc., CV13-4616-GAF (AJWx). (2014)

Court: District Court, C.D. California Number: infdco20140729732 Visitors: 6
Filed: Jul. 25, 2014
Latest Update: Jul. 25, 2014
Summary: JUDGMENT AS TO DEFENDANTS IMAGING3, INC. AND DEAN NORMAN JANES GARY A. FEESS, District Judge. Plaintiff Securities and Exchange Commission ("SEC") having filed a Complaint and Defendants Imaging3, Inc. ("Imaging3") and Dean Norman Janes ("Janes") (together, "Defendants") having entered general appearances; consented to the Court's jurisdiction over Defendants and the subject matter of this action; consented to entry of this Judgment without admitting or denying the allegations of the Complaint
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JUDGMENT AS TO DEFENDANTS IMAGING3, INC. AND DEAN NORMAN JANES

GARY A. FEESS, District Judge.

Plaintiff Securities and Exchange Commission ("SEC") having filed a Complaint and Defendants Imaging3, Inc. ("Imaging3") and Dean Norman Janes ("Janes") (together, "Defendants") having entered general appearances; consented to the Court's jurisdiction over Defendants 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 and except as otherwise provided herein in paragraph V); waived findings of fact and conclusions of law; and waived any right to appeal from this Judgment:

I.

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant Janes and Defendant Janes' 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, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security:

(a) to employ any device, scheme, or artifice to defraud;

(b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or

(c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.

II.

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 Janes is prohibited, for five years following the date of entry of this 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)].

III.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant Janes shall pay a civil penalty pursuant to Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. The Court shall determine the amount of the civil penalty upon motion of the SEC. In connection with the SEC's motion for civil penalties, and at any hearing held on such a motion: (a) Defendant Janes will be precluded from arguing that he did not violate the federal securities laws as alleged in the Complaint; (b) Defendant Janes may not challenge the validity of the Consent or this 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 with the SEC's motion for civil penalties, the parties may take discovery, including discovery from appropriate non-parties.

IV.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent of Defendants Imaging3, Inc. and Dean Norman Janes is incorporated herein with the same force and effect as if fully set forth herein, and that Defendants shall comply with all of the undertakings and agreements set forth therein, including, but not limited to, Defendant Imaging3's agreement to continue the self-remediation policies identified in paragraph 5 of the Consent for a period of three years from the date of entry of this Judgment, and Defendant Imaging3's undertakings to: (i) provide written notification to the SEC, within five days, if it has been charged or convicted of an offense by any federal, state, or local law enforcement organization or regulatory agency; and (ii) provide written notification to the SEC, within five days, if a formal or informal complaint has been made against it or disciplinary action has been taken against it by any self-regulatory organization.

V.

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 Defendants, and further, any debt for civil penalties or other amounts due by Defendants under this 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 Defendants 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).

VI.

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.

Source:  Leagle

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