Free Judgment - District Court of Arizona - Arizona

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Case 2:03-cv-02323-JWS Document 142 Filed 08/06/2008 Page 1 of 5

UNITED STATES DISTRICT COURT DISTRICT OF ARIZONA SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. SECURITY TRUST COMPANY, N.A., et al., Defendants. The Securities and Exchange Commission ("Commission") having filed a Complaint and Grant D. Seeger ("Seeger") having entered a general appearance; consented to the Court's jurisdiction over him 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: Case No. CV-03-2323-PHX-JWS FINAL JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF AGAINST GRANT D. SEEGER

I. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Seeger and his agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by

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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) (b) to employ any device, scheme, or artifice to defraud; 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 Seeger and his 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 Section 17(a) of the Securities Act of 1933 ("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) (b) to employ any device, scheme, or artifice to defraud; 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

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(c)

to engage in any transaction, practice, or course of business which

operates or would operate as a fraud or deceit upon the purchaser.

III. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Seeger and his 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 Section 37 of the Investment Company Act, 15 U.S.C. § 80a-36, by, directly or indirectly stealing, unlawfully abstracting, unlawfully and willfully converting to his own use or to the use of another, or embezzling the moneys, funds, securities, credits, property, or assets of a registered investment company.

IV. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Seeger is liable for total disgorgement of $175,877, representing profits gained as a result of the conduct alleged in the Complaint. Seeger has paid $50,000 in disgorgement, and is therefore liable for the remaining $125,877, together with prejudgment interest thereon in the amount of $17,976.63, for a total of $143,853.63, and a civil penalty in the amount of $120,000, pursuant to Section 20(d) of the Securities Act, 15 U.S.C. § 77t(d), Section 21(d)(3) of the Exchange Act, 15 U.S.C. § 78u(d)(3), and Section 42(e) of the Investment Company Act, 15 U.S.C. § 80a-41(e). Seeger shall satisfy his remaining obligation of $263,853.62, as follows: 1) Seeger shall pay $50,000 within 10 days of entry of Final Judgment; 2) Seeger shall pay another $50,000, plus post-judgment interest thereon calculated pursuant to 28 U.S.C. § 1961, by October 1, 2008; and 3) Seeger shall pay the remaining balance of $163,853.63, plus post-judgment interest thereon calculated pursuant to 28 U.S.C. § 1961, by June 1, 2010. Seeger pledges as collateral his ownership interest in
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Seeger Entertainment Group LLP until this Final Judgment is paid in full. If Seeger fails to make any payment according to the payment plan set forth above in this paragraph, the payment plan shall become null and void, and all amounts due under the Final Judgment minus any payments made shall become due and payable immediately. Each payment shall be made by certified check, bank cashier's check, or United States postal money order payable to the Securities and Exchange Commission. The payment shall be delivered or mailed to the Office of Financial Management, Securities and Exchange Commission, Operations, Center, 6432 General Green Way, Mail Stop 0-3, Alexandria, Virginia 22312, and shall be accompanied by a letter identifying Seeger as a defendant in this action; setting forth the title and civil action number of this action and the name of this Court and specifying that payment is made pursuant to this Final Judgment. Seeger shall simultaneously transmit photocopies of each such payment and letter to the Commission's counsel in this action. Seeger shall pay post-judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961. The Commission shall remit the funds paid pursuant to this paragraph to the United States Treasury.

V. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated herein with the same force and effect as if fully set forth herein, and that Seeger shall comply with all of the undertakings and agreements set forth therein.

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 Final Judgment.

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VII. 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.

Dated: August 5, 2008

/s/ HONORABLE JOHN W. SEDWICK UNITED STATES DISTRICT JUDGE

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