United States District Court, S.D. Alabama, Northern Division
FINAL JUDGMENT AS TO DEFENDANT MICHAEL HALE
SMITH
TERRY
F. MOORER UNITED STATES DISTRICT JUDGE
The
Securities and Exchange Commission having filed a Complaint
and Defendant Michael Hale Smith (“Hale Smith”)
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); 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 Hale Smith is 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,
by: (i) buying or selling a security of any issuer, on the
basis of material nonpublic information, in breach of a
fiduciary duty or other duty of trust or confidence that is
owed directly, indirectly, or derivatively, to the issuer of
that security or the shareholders of that issuer, or to any
other person who is the source of the information; or (ii) by
communicating material nonpublic information about a security
or issuer, in breach of a fiduciary duty or other duty of
trust or confidence, to another person or persons for
purposes of buying or selling any security.
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 FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendant Hale Smith is liable for disgorgement of $220,
625.84, representing profits gained as a result of the
conduct alleged in the Complaint, together with prejudgment
interest thereon in the amount of $31, 443.51, and a civil
penalty in the amount of $220, 625.84 pursuant to Section
21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)].
Defendant shall satisfy this obligation by paying $472,
695.19 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.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
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; Michael Hale
Smith as a defendant in this action; and specifying ...