Securities and Exchange Commission v. Wwebnet, Inc. et al
| Securities and Exchange Commission |
| Robert L. Kelly and Wwebnet, Inc. |
| Mr. United States |
| 1:2012cv06581 |
| August 28, 2012 |
| US District Court for the Southern District of New York |
| Foley Square Office |
| New York |
| Securities/Commodities/Exchanges |
| 15 U.S.C. § 77 |
| Plaintiff |
Docket Report
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Filing 27
FINAL JUDGMENT AS TO DEFENDANT WWEBNET, INC. in favor of Securities and Exchange Commission against Wwebnet, Inc. in the amount of $15,459,127.00. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant Wwebnet and Defendant Wwebnet's agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final 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, as set forth within. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant Wwebnet and Defendant Wwebnet's 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 17(a) of the Securities Act of 1933 (the "Securities Act") [15 U.S.C. 77q(a)] 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, as set forth within. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant Wwebnet is liable for disgorgement of $6,604,846-ofwhich $2,111,660 is a joint and several obligation with Defendant Robert Kelly that has been deemed satisfied by the Final Judgment as to Defendant Robert Kelly-representing its profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $1,085,941 for a total of $5,579,127. Defendant Wwebnet shall satisfy this obligation by paying $5,579,127 to the Securities and Exchange Commission within 14 days after entry of this Final Judgment, as set forth within. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant Wwebnet shall pay a civil penalty in the amount of $9,880,000.00 to the Securities and Exchange Commission 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 Wwebnet shall make this payment within 14 days after entry of this Final Judgment, as set forth within. 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 Wwebnet, and further, any debt for disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant Wwebnet 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 Wwebnet 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). (Signed by Judge Analisa Torres on 5/19/2015) (ajs)
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| Filing 26 CERTIFICATE OF SERVICE of Order to adjourn hearing on May 6, 2015. Service was made by Mail. Document filed by Securities and Exchange Commission. (Germann, Mark) |
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Filing 25
ORDER: The hearing scheduled for May 12, 2015, is ADJOURNED to May 19, 2015, at 4:45 p.m. By May 8, 2015, Plaintiff shall serve a copy of this order upon Defendants Wwebnet, Inc. and Robert L. Kelly by personal delivery, overnight courier, or first-class mail. SO ORDERED. (Show Cause Hearing set for 5/19/2015 at 04:45 PM before Judge Analisa Torres.) (Signed by Judge Analisa Torres on 5/5/2015) (ajs)
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| Filing 24 SEALED DOCUMENT placed in vault.(rz) |
| Filing 23 NOTICE OF APPEARANCE by Paul G. Gizzi on behalf of Securities and Exchange Commission. (Gizzi, Paul) |
| Filing 22 AFFIDAVIT in Support re: 20 Order to Show Cause,,,,,,,. Document filed by Securities and Exchange Commission. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, 10, 11, 12, 13, # 10 Exhibit 14, # 11 Certificate of Service)(Germann, Mark) |
| Filing 21 MEMORANDUM OF LAW in Support re: 20 Order to Show Cause,,,,,,, . Document filed by Securities and Exchange Commission. (Attachments: # 1 Certificate of Service)(Germann, Mark) |
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Filing 20
ORDER TO SHOW CAUSE CONCERNING JUDGMENT OF DEFAULT AGAINST WWEBNET, INC.: Wwebnet shall show cause as to why this Court should not enter a default judgment against Wwebnet that: (1) permanently enjoins Wwebnet from future violations of the federal securities laws; (2) orders Wwebnet to disgorge the ill-gotten gains it received as a result of its violations of the federal securities laws and to pay prejudgment interest thereon; and (3) imposes civil money penalties against Wwebnet 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)]. IT IS HEREBY FURTHER ORDERED that by April 14, 2015, the Commission shall serve a copy of this Order and the papers supporting the Commission's Application upon Wwebnet and Robert L. Kelly by personal delivery, overnight courier, or first-class mail. IT IS HEREBY FURTHER ORDERED that Wwebnet shall deliver any opposing papers in response to the Order to Show Cause no later than April 28, 2015, at 5:00 p.m. Service shall be made by delivering the papers, using the most expeditious means available, by that date and time, to the New York Regional Office of the Commission at 200 Vesey Street, Brookfield Place, New York, New York 10281, Attn: Mark S. Germann, Esq., or such other place as counsel for the Commission may direct in writing. The Commission shall have until May 5, 2015, at 5:00 p.m., to serve by the most expeditious means available, any reply papers upon Wwebnet, or upon its counsel, if counsel shall have made an appearance in this action. SO ORDERED. Show Cause Hearing set for 5/12/2015 at 04:15 PM in Courtroom 15D, 500 Pearl Street, New York, NY 10007 before Judge Analisa Torres. (Signed by Judge Analisa Torres on 3/31/2015) (ajs)
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Filing 19
ORDER: By letter dated March 11, 2015, Plaintiff requests to file in redacted form certain pages of bank records. Plaintiff intends to file these documents in connection with its anticipated motion for default judgment against Defendant Wwebnet, Inc. ("Wwebnet"). Specifically, Plaintiff seeks to redact information concerning "the identities of Wwebnet investors and employees, who are not parties to this lawsuit." Because the Court finds that the non-parties' privacy interests outweigh the presumption of public access, Plaintiffs request is GRANTED. See, e.g., Cohen v. Gerson Lehrman Grp., Inc., 09 Civ. 4352, 2011 WL 4336679, at *2 (S.D.N.Y. Sept. 15, 2011); Caxton Int'l Ltd. v. Reserve Int'l Liquidity Fund, Ltd., 09 Civ. 782, 2009 WL 2365246, at *6-7 (S.D.N.Y. July 30, 2009). Plaintiff may redact the documents in the manner proposed. SO ORDERED. (Signed by Judge Analisa Torres on 3/12/2015) (ajs)
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Filing 18
FINAL JUDGMENT AS TO DEFENDANT ROBERT L. KELLY in favor of Securities and Exchange Commission against Robert L. Kelly in the amount of $2,111,660. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final 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. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's 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 17(a) of the Securities Act of 1933 (the "Securities Act") [15 U.S.C. 77q(a)] 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: (a) to employ any device, scheme, or artifice to defraud; (b) to obtain money or property by means of any untrue statement of a material fact or any omission of a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or (c) 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 HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $2,111,660, representing his profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest. This amount and prejudgment interest shall be deemed satisfied by the Order of Restitution entered against Defendant in a related criminal case in the Southern District of New York [United States v. Robert Kelly, 12 Cr. 0888 (PAC)], which orders Defendant to pay restitution of $2,111,660. 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)] and/or Section 20(e) of the Securities Act [15 U.S.C. 77t(e)], Defendant is prohibited 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 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 Exchange Act [17 C.P.R. 240.3a51-1]. (See Order.) (Signed by Judge Analisa Torres on 1/16/2015) (ajs)
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| Filing 17 LETTER addressed to Judge Analisa Torres from Mark S. Germann dated January 16, 2015 re: Kelly proposed consent judgment. Document filed by Securities and Exchange Commission.(Germann, Mark) |
| Filing 16 CLERK'S CERTIFICATE OF DEFAULT as to Wwebnet, Inc. (km) |
| Filing 15 REQUEST TO ENTER DEFAULT against Wwebnet, Inc. . Document filed by Securities and Exchange Commission. (Attachments: # 1 Affidavit for Judgment by Default)(Germann, Mark) |
| Filing 14 NOTICE OF CASE REASSIGNMENT to Judge Analisa Torres. Judge Lewis A. Kaplan is no longer assigned to the case. (pgu) |
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Filing 13
ORDER STAYING PROCEEDINGS: granting 9 Motion to Intervene. that all proceedings in this action, including discovery, are stayed until completion of trial, or earlier termination, of the parallel criminal proceeding against Defendant Robert Kelly in United States v. Robert Kelly, 12-Cr-888 (SDNY) (PAC). The motion to intervene and for a stay of discovery is granted to the extent stated herein. (Signed by Judge Lewis A. Kaplan on 1/7/2013) (pl)
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| Filing 12 ANSWER to 1 Complaint. Document filed by Robert L. Kelly.(mro) |
| Filing 11 NOTICE OF APPEARANCE by Robert L. Kelly appearing pro se. (mro) |
| Filing 10 MEMORANDUM OF LAW in Support re: 9 MOTION to Intervene and for Limited Stay of Discovery.. Document filed by United States. (Kwok, Chi) |
| Filing 9 MOTION to Intervene and for Limited Stay of Discovery. Document filed by United States.(Kwok, Chi) |
| Filing 8 FILING ERROR - WRONG EVENT TYPE SELECTED FROM MENU - MOTION to Intervene and For a Limited Stay of Discovery. Document filed by United States.(Kwok, Chi) Modified on 12/12/2012 (ldi). |
| Filing 7 NOTICE OF APPEARANCE by Chi T. Steve Kwok on behalf of United States (Kwok, Chi) |
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Filing 6
ORDER: In accordance with Section 1 of the Standing Order in In re Pilot Project Regarding Case Management Techniques for Complex Civil Cases in the Southern District of New York, the undersigned hereby determines that this case shall NOT be designated for inclusion in the project. (Signed by Judge Lewis A. Kaplan on 11/20/2012) (js)
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Filing 5
ORDER RE SCHEDULING AND INITIAL PRETRIAL CONFERENCE: Counsel receiving this order shall promptly mail copies hereof to all other counsel of record or, in the case of parties for which no appearance has been made, to such parties. Counsel for all parties are directed to confer regarding an agreed scheduling order. If counsel are able to agree on a schedule and the agreed schedule calls for filing of the pretrial order not more than six (6) months from the date of this order, counsel shall sign and email a PDF of the proposed schedule to the Orders and Judgment Clerk* within fourteen (14) days from the date hereof by using the consent scheduling order form annexed for the Court's consideration. If such a consent order is not emailed to the Orders and Judgments Clerk within the time provided, a conference will be held on 12/19/12 in courtroom 21B, 500 Pearl Street, New York, New York at 2:30 P.M. Initial Conference set for 12/19/2012 at 02:30 PM in Courtroom 21B, 500 Pearl Street, New York, NY 10007 before Judge Lewis A. Kaplan. (Signed by Judge Lewis A. Kaplan on 11/20/2012) (js)
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| Filing 4 WAIVER OF SERVICE RETURNED EXECUTED. Wwebnet, Inc. waiver sent on 10/15/2012, answer due 12/14/2012. Document filed by Securities and Exchange Commission. (Germann, Mark) |
| Filing 3 WAIVER OF SERVICE RETURNED EXECUTED. Robert L. Kelly waiver sent on 10/15/2012, answer due 12/14/2012. Document filed by Securities and Exchange Commission. (Germann, Mark) |
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Filing 2
STANDING ORDER IN RE PILOT PROJECT REGARDING CASE MANAGEMENT TECHNIQUES FOR COMPLEX CIVIL CASES IN THE SOUTHERN DISTRICT OF NEW YORK (See M-10-468 Order filed November 1, 2011). This case is hereby designated for inclusion in the Pilot Project Regarding Case Management Techniques for Complex Civil Cases in the Southern District of New York (the Pilot Project), unless the judge to whom this case is assigned determines otherwise. This case is designated for inclusion in the Pilot Project because it is a class action, an MDL action, or is in one of the following Nature of Suit categories: 160, 245, 315, 355, 365, 385, 410, 830, 840, 850, 893, or 950. The presiding judge in a case that does not otherwise qualify for inclusion in the Pilot Project may nevertheless designate the case for inclusion in the Pilot Project by issuing an order directing that the case be included in the Pilot Project. The description of the Pilot Project, including procedures to be followed, is attached to this Order. (Signed by Judge Loretta A. Preska on 10/31/2011) (mro)
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| Filing 1 COMPLAINT against Robert L. Kelly, Wwebnet, Inc. Document filed by Securities and Exchange Commission.(mro) |
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