Securities and Exchange Commission v. Thompson et al
Plaintiff: Securities and Exchange Commission
Defendant: Anthony J. Thompson, Jr., Jay Fung and Eric Van Nguyen
Relief_defendant: John Babikian and Kendall Thompson
Case Number: 1:2014cv09126
Filed: November 17, 2014
Court: US District Court for the Southern District of New York
Office: Foley Square Office
County: New York
Presiding Judge: Katherine B. Forrest
Nature of Suit: Securities/Commodities/Exchanges
Cause of Action: 15 U.S.C. ยง 77
Jury Demanded By: None

Available Case Documents

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Date Filed Document Text
November 23, 2021 Opinion or Order Filing 194 ORDER granting 192 Letter Motion to Adjourn Conference. The Court is in receipt of the Parties' letters dated November 22, 2021. The conference scheduled for December 2, 2021 is here by ADJOURNED. The Clerk of the Court is respectfully directed to terminated ECF No. 192. (Signed by Judge Andrew L. Carter, Jr on 11/23/2021) (ate)
November 19, 2021 Opinion or Order Filing 191 ORDER granting 186 Letter Motion for Discovery. The Court is in receipt of the SEC's letter motion for an informal conference. The request is hereby GRANTED. The Court will hold a telephonic conference on Thursday, December 2, 2021 at 2:0 0PM Eastern Time. All parties shall appear and should contact the Court at 1-888-363-4749 (access code: 3768660). The Clerk of the Court is respectfully directed to terminate ECF No. 186. (Signed by Judge Andrew L. Carter, Jr on 11/19/2021) (rro)
November 10, 2021 Opinion or Order Filing 189 STIPULATED TO PAYMENT PLAN ORDER: WHEREAS the Commission and Thompson have reached an agreement to resolve the contempt action and for Thompson to enter a payment plan ordered by the Court, it is hereby ORDERED as follows: Thompson shall pay &# 036;51,000 within two days of entry of this Order; Until Thompson satisfies the Disgorgement Obligation and all accruing postjudgment interest, Thompson shall pay $7,500 per month due on the 3rd of each month beginning December 3, 2021 so long as his total compensation from Sugarloaf and/or any other source is greater than or equal to $150,000 per year ("Monthly Payments"). For each $10,000 increase in salary from any source, Mr. Thompson will pay the Commission an additional $250 per month; In addition to the Monthly Payments, until Thompson satisfies the Disgorgement Obligation and all accruing postjudgment interest, Thompson shall pay 50% of his bonuses from any source up to $200,000; 75 7; of bonus earnings exceeding $200,000 up to $300,000; and 100% of bonus earnings exceeding $300,000. Such payments shall be made within 5 days of receipt of any bonus along with proof of the total amount received and a calcul ation of therequired remittance; As statutory post judgment interest continues to accrue, before Mr. Thompson makes the last payment, he will contact Commission counsel for a pay-off amount, no less than a week before he plans to make such payment; Provided that Thompson complies with the payment terms herein, the Commission will not collect from other sources. If, however, Thompson defaults, Commission counsel may take appropriate collection steps including again seeking a finding of contem pt based on Thompson's failure to pay what he owes and for violating this Court Order; Thompson will submit proof of payment to Commission counsel; Thompson will file on ECF a notice of failure to make a timely payment on ECF within 48 hours o f the delinquency; Thompson will provide any source documents for Thompson's taxes, including but not limited to W-2s, 1099s or K-1s, to the Commission annually by no later than April 17and federal and state tax returns within ten days of fili ng his returns; Thompson will provide any financial documentation requested by the Commission in connection with this payment plan so that the Commission can verify Mr. Thompson's salary and bonus income; Thompson may transmit payment electro nically to the Commission, which will provide detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a bank account via https://pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm. De fendant 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 Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 and shall be accompanied by a letter identifying the case title, civil action number, and name of this Court; Anthony Thompson as a defendant in this action; and specifying that payment is made pursuant to this Final Judgment; and The Commission's contempt application is withdrawn with the ability to refile if Thompson defaults on the payment plan herein. (Signed by Judge Andrew L. Carter, Jr on 11/10/2021) (ate)
October 20, 2021 Opinion or Order Filing 182 DEFAULT JUDGMENT: IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that the Motion is GRANTED. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 1 0(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 m aterial 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 de ceit upon any person. 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 servi ce 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). IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECRE ED that Defendant is 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 instrumen ts 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 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 Fi nal 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). IT IS HEREBY FURTHE R ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Section 17(b) of the Securities Act [15 U.S.C. § 77q(b)] by the use of any means or instruments of transportation or communication in interst ate commerce or by use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication which, though not purporting to offer a security for sale, descri bes such security for a consideration received or to be received, directly or indirectly, from an issuer, underwriter, or dealer, without fully disclosing the receipt, whether past or prospective, of such consideration and the amount thereof. 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) Defenda nt's officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a). IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is perman ently 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.F.R. 240.3a51-1]. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgemen t of $3,907,040, representing net profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $1,115,521, and a civil penalty in the amount of $750,000 pursuant to S ection 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 $5,772,561 to the Securities and Exchange Commission within 30 days after entry of this Final Judgment. 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.g ov 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 del ivered or mailed to: Enterprise Services Center Accounts Receivable Branch 6500 South MacArthur Boulevard Oklahoma City, OK 73169 and shall be accompanied by a letter identifying the case title, civil action number, and name of this Court; Eric V an Nguyen as a defendant in this action; and specifying that payment is made pursuant to this Final Judgment. Defendant shall simultaneously transmit photocopies of evidence of payment and case identifying information to the Commission's couns el in this action. By making this payment, Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part of the funds shall be returned to Defendant. The Commission may enforce the Court's judgment for dis gorgement and prejudgment interest by using all collection procedures authorized by law, including, but not limited to, moving for civil contempt at any time after 30 days following entry of this Final Judgment. The Commission may enforce the Court 's judgment for penalties by the use of all collection procedures authorized by law, including the Federal Debt Collection Procedures Act, 28 U.S.C. § 3001 et seq., and moving for civil contempt for the violation of any Court orders issu ed in this action. Defendant shall pay post judgment interest on any amounts due after 30 days of the entry of this Final Judgment pursuant to 28 U.S.C. § 1961. The Commission shall hold the funds, together with any interest and income earned thereon (collectively, the "Fund"), pending further order of the Court. The Commission may propose a plan to distribute the Fund subject to the Court's approval. Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. The Court shall retain jurisdiction over the administration of any distribution of the Fund and the Fund may only be disbursed pursuant to an Order of the Court. Regar dless of whether any such Fair Fund distribution is made, amounts ordered to be paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the government for all purposes, including all tax purposes. To preserve the det errent effect of the civil penalty, Defendant shall not, after offset or reduction of any award of compensatory damages in any Related Investor Action based on Defendant's payment of disgorgement in this action, argue that he is entitled to, nor shall he further benefit by, offset or reduction of such compensatory damages award by the amount of any part of Defendant's payment of a civil penalty in this action ("Penalty Offset"). If the court in any Related Investor Actio n grants such a Penalty Offset, Defendant shall, within 30 days after entry of a final order granting the Penalty Offset, notify the Commission's counsel in this action and pay the amount of the Penalty Offset to the United States Treasury or to a Fair Fund, as the Commission directs. Such a payment shall not be deemed an additional civil penalty and shall not be deemed to change the amount of the civil penalty imposed in this Judgment. For purposes of this paragraph, a "Related I nvestor Action" means a private damages action brought against Defendant by or on behalf of one or more investors based on substantially the same facts as alleged in the Complaint in this action. 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. (Signed by Judge Andrew L. Carter, Jr on 10/20/2021) (ate)
December 30, 2020 Opinion or Order Filing 155 FINAL JUDGMENT AS TO DEFENDANT JAY FUNG: IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $1,766,083.00, representing profits gained as a result of the conduct alleged in the Complaint, together wi th prejudgment interest thereon in the amount of $244,308.00, for a total of $2,010,391.00, provided, however, that this disgorgement and prejudgment interest award shall be deemed satisfied by the entry of the restitution order in People o f the State of New York against Anthony Thompson et al., Indictment No. 03853/2014 (Supreme Court, New York County). IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, 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, and further, any debt for disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this Final Judgment or any other jud gment, order, consent order, decree or settlement agreement entered in connection with this proceeding, is a debt for the violation by Defendant 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). 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. 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 Final Judgment forthwith and without further notice. (Signed by Judge Andrew L. Carter, Jr on 12/30/2020) (nb) Transmission to Finance Unit (Cashiers) for processing.
March 2, 2017 Opinion or Order Filing 64 OPINION AND ORDER: re: 42 MOTION to Dismiss the Complaint filed by Anthony J. Thompson, Jr. For the reasons set forth above, Thompson's motion for summary judgment (ECF No. 42) is DENIED. Discovery remains stayed in this matter until A ugust 11, 2017 or the resolution of the parallel criminal proceeding, whichever is earlier. (See ECF No. 39.) The parties shall provide another update to the Court on the status of the parallel criminal proceeding not later than June 1, 2017, or within two weeks of the resolution of any appeals to the Appellate Division, whichever comes first. The Clerk of Court is directed to terminate the motion at ECF No. 42. SO ORDERED. (Signed by Judge Katherine B. Forrest on 3/02/2017) (ama)
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Plaintiff: Securities and Exchange Commission
Represented By: Andrew Matthew Calamari
Represented By: Howard A. Fischer
Represented By: Thomas Peter Smith
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Defendant: Anthony J. Thompson, Jr.
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Defendant: Jay Fung
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Defendant: Eric Van Nguyen
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Relief_defendant: John Babikian
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Relief_defendant: Kendall Thompson
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