Free Motion for Miscellaneous Relief - District Court of Arizona - Arizona

MARSHALL GANDY for Attomev Plaintiff ES SECIJRITI AND 2 IJNITEbSTATES EXCHANGECOMMISSION BarNo.07616500 l Texas Suite1900 Plaza, Burnett Unit #18 4 80t ChenySkeet, 76102-6882 Forl Worth,Texas (817)978-6464 5 Telephone; (817)978-4927 Facsimile:
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DISTNCTCOURT STATES IN THEUNITED OF FORTHEDISTRICT ARIZONA
PHOENIXDIVISION and Securities Exchange Commission,

NO. CASE cv 03-1825-PHX-PGR as Judgntentto Agreed
Holt DefendantRonaldStcPheD

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Plaintifi
vs.

Holt, et al. Stephen t 2 Ronald Cases: Related ll t4 and Defendants' Funding CFTCv. Internalional el Association, al. Number: Case

Holt, et al. l 5 Annette l6 t1 t3 l9 20 for SolelY Defendan$ Relief of Purposes Equitable

03-cv-1826-PHX-PGR
Investorsin IFA' et al v. Funding International /ssociation,el ql. Number: Case PHX-PG 03-cv- 1302

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as Aseed ludgmeni lo Holl SrePherr Ronald D;tendant Case Ronattl 2:03-cv-01826-PGR Holt, eldl StePhen SECE ;AGE I

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AgrcedJudg|Ilentas to

IIolt SteDhen Ronald Defendant and The Securitiesand ExchangeCommissionhaving filed a Contplainl having entereda generalappcarance; RonaldStephenHolt ("Defendant") Defendant matterofthis actiorl: and j overDefendant the subject to consentcd the Court's urisdiction Holt Ronald Steplten to conscnted entry of this AgreedJudguent as to Defendant Conplaint of ("AgreedJudgment') without admittingor denyingthe allegations thc of of waivcdfindings factandconclusions lawi andwaived (cxcept to jurisdiction); as

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Judgmentl from thisAgreed anyrightto appcal I. and AND DECREEDthat Dcfendant ADJUDGED, IT IS HEREBYORDERED, or in and attorneys, all pcrsons activeconcert employees, servants, agents, Defendant's actualnoticeof this AgreetlJudgme'lby pcrsonal with themwho rceive participation from violating'dircctlyor and restrained enjoined arc scrviccor otherwise permancntly "Excltange Act") Act Exchangc of 1934(thc lO(b)of theSecurities Section inclircctly, thereunder [17CFR $24010b-5]'by and $78j(b)l Rule l0b-5promulgated !5 U.S.C. or conmerce' of the mails'ot of any of or usingauy Ineans ins(rumelltality intcrstatg or with the purchaso saleof in cxchange, connection facility of any nationalsecurities
anysecunty: (a) to employ any device,schene,or artifice to defraud;

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A ! r e c d J u d g N e | t . sl o Holt Rorald SlePhen Dcl-endrnl SLa rt Ronill St.phcnHolt et ol Case 2:03-cv-01826-PGR

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(b)

0lnatcrial fact ofa to makeanyuntruestatemcnt material or to omit to state

made' in the ligbt of thc in fact nccessary order to make the statemcnts or not underwhichtheyweremade, misleading; circumstances (c) or lvhicltoperates of or in to engage any act,practicc, course busincss

uponanyperson' as wouldoperate a fraudor deceit ll' AND DI]CREEDthAt ADJUDGED, IT IS HEREBYFURTHERORDERED, in and all persons attomeys, employees, servants, agents, and Defendant Defendant.s of this Agreed active concrtor participationwith them who rcceivs actualnotice

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restraincd are serviccor otherwise permanently pcrsonal l { ) .hrclgmenlby
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andcnjoincdfrorn

in Act of 17(a) thc Sccuritics [15 U S C $7?q(a)] the offeror saleof Section violating colnllltlnlciltlon

or of or t 2 anysccu ty by theuseof anymeans instrumcnts transpodation
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or directly indirectly: ofthc nlails, or by con'trrrercc use in interslate (a) (b) or schcme, artificeto defraud; to employa|rydcvice, of statemcnt a nratcrial of by to obtai[ moneyor property means anyuntrue

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in fact ofa matcrial necessary orderto makethc statcnrents fact or anyomission

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undcr which they were made' not made, in light of the circumstanccs mislcading; or (c) lvhichopcrates ofbusincss or practice, course in to engage any transaction,

or would opcrateas a fraud or deceituponthe purchascr-

AgrecdJudgDentas to RonaldStcphenHoll Defendant Hoh, et al Case 2:03-cv-01826-PGR SECts RahaldStePhen

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III. IT tS HEREBY FURTHERORDERED,ADJUDGDD,AND DECREID TITAI In attolllcys,and all persons employees, servants, agents, and Defendant's Defendant with thcm who receiveactual noticc of this '/greed active concertor participation

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fronl and restrained enjoincd are or scrvice otherwise permanently 5 Jwlgmentbypersonal o 1 8 9 l0 II t2 l3 l4 t5 l6 11 t8 t9 20 2l 22
Agrred Judgnrnl as to tlolt Ronald StePhen DefeDdanl tt Rorold SrcthettHalt. et al sLCCase 2:03-cv-01826-PGR PAGI] 4

irr or by, Act 5 violating Section ofthe Sccurities [15U.SC. $?7e] directly indirectly, the exemption; of absence anyapplicable (a) makingusc of is statemnt in effectas to a security, Unlessa rgistralion ln or of or any means instruments transportation communicatioll lnterstllte or commcrce of the mailsto sell suchsecuritythroughthe useor nrediunr or ofanYProsPectus otherwisel (b) canyingor is statement in effectas to a socurity, a Unless registration by comnrcrce' any the to causing be caniedthrough mails or in interstate of for any of or means rnstruments transportation, suchsecurity thepurpose or aftersale; saleor for dcliverY (c) or Making use of any means or instruments of transportation to or commerce of the mails to of1'r sell or in communication interstate arly or the offerto buy through uscor mediumofany prospectus othel1,vtse has statemnt beenfiled with the Commission a unlcss registration security, of is statement the subjct a as to suchsecuritnor while the registration refusalorderor stoporderor (priorto the effectivedateof the registratron

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underSection8 of the or any statement) public procecding examination Acr Sccuritics [5 U.S.C. $77h]. IV. thAt AND DFCREED ADJUDGED, 11'IS HEREBYFURTHERORDERED, profitsgaincdas a resultof the conducl representing shallpay disgorgement Defcndant to thcrcon,and a civil pcDaltypursuarlt interest prejudgment alfeged the Complaint, in Act [15 U.SC ' 78u(d)(3)] The Cotrrlshall Scction2l(cl)(3)of the Exchange nrotion of thc and detcrninc the amountsof the disgorgement civil penalty upon on from Januaryl, 1997'based intercstshallbe calcrrlated Commission.Prejudgment

ol for Scrvice the underpaynrent fedclal usedby the IntcmalRevonue I t ) lhc raleof intercst
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' with the CornmissionJl tax iDcome assetforth in 26 U.S.C. 6621(a)(2)ln connection

held and and./or t 2 nrotion disgorgement civil pcnalties, at anyhearing on snch nrotion: for
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(a)Dcfenclantwi)lbeprccludcdfromarguingthathedidnotviolatethcfetleralsecttr the (b) may not challcnge validityof thc in lawsas allcged theConqlainl; Deferdant of (c) Cot8enl or tlis AgreedJudgment; solely for the purposes such motiotl' the (tl)

true by the Courtland as t o allcgations theComplaintshallbe accepted and dcemed of
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the Court may detcmlinethc issucsraisadin the motion on the basisof afftdavits' and documentary testimony, or of excerpts sworndeposition investigative declarations, judgmentcontained Rulc56(c) in for withoutregardto thestandards summary cvidence, ntotion rvith the ComrllissionSl In Rulesof Civil Procedure. connection of the Iieder.al inclrrdirrg the and/orcivil penalties, particsmay take discovery' fbr disgorgemcnt non-parties. tiorn discovery apptopriate
as AgreedhrdgrDcDt to tloll Dcfendarl Ronald Stepben .blt, et al SEC|s Rordl.l StePhen Case 2:03-cv-01826-PGR

PA'JE5

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I 2 l ts that the Consetlt AND DECREED ADJUDGED, lT IS FURTHERORDERED, and hereinwith tbe sameforceand effctas if fully set fortb hereirr, that incorporatd set and shall Defendant complywith atl ofthe undertakings agreemnts forththerin' 5

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that AND DECREED this Court ADJUDGED, ORDERED, IT lS FURTHER

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the of of for jurisdiction this matter the purposes enforcing terms this of shallretain Judgmenl. Agreed

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vII. Rules pursuant Rule54(b)of theFederal to for no being just rcason delay, There forthwith and Judgmefil this to the of civif procedure, clerk is ordered enter Agreed notice. without further

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Dated:

2005

PAUL G. ROSENBLATT IINITED STATESDISTRICTJUDGE

AgreedJudgmerlasto Holl Stephen Defen&nlRonald Holt. et dl SECr!. RoaahlStephen Case 2:03-cv-01826-PGR

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Approved to form andentryrequested: as

MARSHALLGANDY Bar Texas No.07616500 Attomeyfor Plaintiff COMMISSION AND EXCHANGE SECURITIES Fort worth District Office Plaza, Suitc1900 Bumett Unit Street, #18 801Cherry Fort Wofth,Texas76102-6882 817 8-6464 Telephone: -9'7 -978-492'1 Fax: 817

S. CHAEL
Attomevfor theDefendant -stephen Holt$(T Ronald Osbom l2l2 East 85014 Arizona Phoenix, 577 Tefephone:602-604-7 Fax: 6O2-604-7555

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Ageed ludgnent as to Holl DefendanlRouald StePhen Rouad Skphen Holt, et al SECvs. Case 2:03-cv-01826-PGR

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(,

MARSHALL GANDY y Attome for Plaintiff AND STATESSECURITIES TJNITED EXCHANGECOMMISSION Texas BarNo.07616500 Plaza, Suite1900 Bumett Unit #18 801ChenyStreet, 7 FortWorth,Texas 6102-6882 (817) Tclephone: 978-6464 (81'7) 8-4927 97 Facsimile: DISTRICTCOURT IN THE LINITEDSTATES FORTHE DI$TRICTOF ARIZONA PHOENIXDlVISION and Sscurities Exchange Commission, Plaintiff, vs, ofDefendant Consent Holt RonaldStephen CASENO, cv 03-1825-PHX-PGR

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Holt, et al. Stephen l 2 Ronald l3 l4 and Defendants, Cases: Related CFTCv, Inlernationol el FundingAssociation, al, Number: Case 03-cv- 1826-PHX-PCR Investorsin lFA, et al. v. IntenationalFunding Associqtio, et al. Number: Case PHX-PG 03-cv-1302

Holt, et al. l 5 Annette l6 t7 t8 l9 20 2l 22 Solelyfor Defendants Relief. of Purposes Equitable

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Holt ConscntofDefcndantRonald StcDhen l. having bccn DefendantRonald StephenHolt ("Defendanf') ackno\\'lcdges

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and admits thc seped with lhe corrrplaittt in this action, ente$ a gencral apPealance' Coud's jurisdiction over Defendantand over the subjectmattcrofthis action'

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2.

ofthe Cb plaint (axcept^s to Without admitting or denyingthe allegations

herebv personaland subject matter jurisdiction, which Defendant admits)' Dcfendant

in the form 7 conscntsto the cntry of the Agreed Judgmentas to Ronald StephenHoLt

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hcrein' whicll' among by hcrcto ("lgr eedJudgnrent")andincorporated refercnce attached othcrthings:

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(a)

from violationof and cnjoinsDefcndant restrains permanently ("Securitics Act 5(a), Sections 5(c)andl7(a)oftheSccuritics of 1933 l0(b) of and 77e Act") [15U.S.C. 77e(a), (c) and77q(a)] Sction $$ Act") [15U S C $ Act Exchangc of 1934("Exchangc thc Securitics thercundcr: 78j(b)landRule10b-5 7 C F R $ 240 10b-5] [1

(b)

gained ls reprcsenting to Profits Defendant pay disgorgemcnt orders a rcsult of thc conductallegcd in lhe Complaint'prejudgment thercon; intersst

(")

20(d)of to to orders Defendant pay a civil pcnaltypursuant Section 21(d)of the Act the Securities [15U.S.C. 77t(d)]and Scction $ Act Exchange [15U.S.C$ 78u(d)]'

to paid Pursuant lhe Agreed that acknowledgcs th civil penalty Defendant

308(a)of of pursuant thc Fair Fundprovisions Section to n)aybe distributed 2 2 Judgment

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ofwhether suchFairFuntldistribution any Act theSarbanes-Oxlcy of2002. Regardiess for is made,the civil penaltyshall be treatcdas a penaltypaid (o the govcrnment all jncluding tax purposes. prescrve detenent effectofthc civil penalty' the To purposes, all ofany awardofconlpensatory agrees he shallnot,afteroffsetor reduclion that Defendant payment disgorgenrenl of on Actionbased Defendant's Investor damagcs anyRelatcd in in this action,arguethat he is entitledto, nor shall he furthcr benefit by, ollsct or damagesaward by thc amount of any Pafl of rcductionof such compensatory Offset") lf the courtin payment a civil penaltyin this action("Penalty of Dcfendant's that agrees hc shall, Offset,Dcfendant lnyestor Action gmntssucha Penalty anyRelated within 30 days after entry of a final order granlingthe PenaltyOffset, notify thc counselin this actionand pay the amountof the PenaltyOffset to dlc Commission's

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directs.Sucha paynrcnt or Treasury to a FairFund,astheCommission t 2 Uniled States thc to and civil pcnalty shallnot bc deemed changc an l 3 shallnot bc deemed additional a of in of t 4 anrount thc civil pcnaltyimposed tlris action For purposcs this paragraph' by Dofendant actionbroughtagainst a Action" means privatedamages Invostor l 5 "Related in the on based substantially samefactsasalleged t 6 or ol behalfof oneor moreinvestors t'7 t8 tlreComplaintin this action.
4. Defendantagreesthat he shall not sek or accept,directly or indircctly'

or t 9 reimburscment indemnificalionfrom any sourcc,including but not limited to payment

20 mado pursuart to any insurancepolicy, with regard to any civil penalty arnountsthal 2 1 Defendantpays pursuantlo tl'rcAgreed Judgmenl,regardlessof whethel such Penalty 2)
anounts or any part thgreof arc added to a distribution fund or otherwisc uscd for lhc

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or lbr that furtheragrecs he shallnot clainr,assert, aPPly bcnefitof invsstors.Defendant state, localtax for anypcnalty or to with regard anyfedcral, or a taxdeduction tax credit of to payspursuant tbeAgreedJudgtreat,regardless *hellrer amounts that Defendant or suchpenaltyamounts any part thcreofare addcdto a distributioltfunrl or othcnvisc for used thobenefitofinvestors. 5. of waivesthe entry of findingsof fact and conclusions law Defcndant

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Rulesof Civil Procedurc. to 7 pursuant Rule52 ofthe Federal E 6. waivesthc right, if any,to a jury trial and to appcalfrotn thc Defendant

Judgment. entryof theAgreed 10
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tlrat no Dsfendantcntcrs into lbis Consentvoluntarily and rcprcsents

by bccnmadc llrcC'onlnlission of promises, inducemcnts anykindhave or offcrs, thfcals,

to of or agent, represcnlative thc Cotnmission indttcc officer,cmploycc, t 2 or any mcmbcr, to t 3 Defendant cnterinto ihis Corscrl
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into thc Agreul shall be incorporatcd that lhis Consent agrees Dcfendanl

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forccandeffectasif fully setforththcrein' witlt the samc Judgment 9. of the will Defendant not oppose clforcemont thcAgreedJudgtrall on thc

Rulc 65(d)of thc FedcfalRulcsof Civil ground, any exists, that it failsto comgly-with if and hercby waivesany objcctionbascdthereon. I'rocedure, 10. of Defendantwaives ser"llac theAgreedJudgnent and agrecsthat entry of

theAgreedJudgnenl by the Coud and filing with the Clcrk of the Court'will constitute notice to Defcndant of its tems and conditions. Defendantfurther agreesto provide counselfor the Commission,within thifiy days after the Agreed Judgnerrl is filccl with

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has that statiDg Dcfendatrt rcccivcd theClerkof ttreCourt,witlr an affidavitor dcclalation and reada copy ofthe AgreedJudgment. I l. oDly the clairns with l7 C.F.R.202 5(f), this CbriserlresolYes Consistent

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that acknowiedgcs no in Defendant this civil procceding.Defendant against assertcd has bccn madc by the Commissionor any membcr' officcr' promise or reprcsentation wilh rcgard to any criminal of cnployee, agcnl, or rgpresentative the Commission liability that may have ariscn or may arise from the facts underlyingthis aclion or

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waives any claim of Dorrblc imnunity from any such criminal liability Defendant Jeopardybasedupon thc settlcmentof this proceeding,including thc irnpositionof any that thc Cotlrl'sentry ol' rcmedyor civil penalty hercin. Defendantfurther acknowledgcs under fedcral or statc law and injunction may havc collateralconsequenccs a permanont

t 2 thc rules and regulationsof self-rcgulatoryorganizations,licensing boards' and other
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but are not linitcd lo a includa, conscquenccs Suchcollateral organizations. rcgulatory

iD' or to with rcspect membership panicipation ot lssocratlon disqualification t 4 statutory

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'fhis

has statutory clisqualification

that are separate from any sanction imposcd in an adtninistrative l 6 consequences on basecl before the Comtrrission t 7 proceeding.ln addition,in any discipliqaly proceeding

t 8 the entry of the injunction in this action, Defendantundcrstandstl.nt he shall not be
ofthe complaintin this action' l 9 pcrnrittedto contcstthc factual allegations

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judicial or adrninistrativc with this actionand any rclated ln connection

by procecding investigationcommenced the Commissionor to which the Clorrnrissiorr ot stafl at such and (i) to is a paiy, Dcfenclant agrces appear be intervie*cdby Conrmission

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limesandplaces the staff requests as uponreasonable notice;(ii) rviJl accept servicc l)y issuedby the Conunission f-or rnail or facsimiletransmission noticesor subpocnas of $,ilh documents tcstimony depositions, at hearings, trials,or in corlnection any or or DefcndaDt's undctsigncd staff; (iii) appoints relalcdinvesligation Commission by (iv) lo and atlomey agent recgive as to seniceofsuchnoticcs subpoenas; with rcspecl ir1 waivcsthe tenitoriallimits on scrviccconlained Rule45 suchnotices subpocnas, and local rulcs,providcd thal thc and of the Federal Rulesof Civil Procedurc anyapplicable party requesting testimony Defendant's travel,lodging,alld subsistencc tho reimburses

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per alld (\') consents lo expcnses the then-prevailing Govemtnent diemrates; at U.S. of jurisdictionovcr Defendant any UnitedStatcs DistriotCoufi fot pttrposcs in pcrsonal sLtbpocna. enlbrcing such any I3. policy with thc Contlrission's to and undelstands agrces comply Dcfendant

"notto pcrnlita dcfcndant rcspondcnt consent a judgmcntor orderthat inlposcs a to to or

or in t 4 sanction while denyingthe allegation thc complaint order for procccdings."l7
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(i) agrccsr not to takcany with C.F.R. $202.5.In compliance this policy,Defendant dcnying,directly or action or to make or permit lo be made any public statcment is thsinrprcssion thecouplainl thal in indirectly, allcgation thecomplaiT_:l any 1:atinS hereby Dcfcndant without factualbasis;and (ii) that upon the filing of llis Consettl, in that withdraws paprs any filed in this actionto theextent theydcnyany allcgation thc may pctitionthc (lottlt this the cornplaint. lfDcfcndantbreaches agreement, Commissiol to this to \acatathcAgreed Judgnenta\d rcstore action its activedookel.Nothingin this (i) paragraph obligations; (ii) right to takelcgal or or affcctsDefendant's: testimonial _

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the is proceedingsrvhich Cornmjssionnota il positions iitigation othetIegal or factual in pa y. 14. to Act, waivesanyrightsunderthe EqualAccess Justice hereby Defendant

provision or Act Faimess of 1996, anyother Enforcement Business Regulatory theSmall

or or 5 of law to scckfiom the UnitedStates, anyagency, any official of the UnitcdStatcs
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of directlyor indirectly,reimbursemcnt atlomey's actingin his or her official capacity, to by or lees or other fees,expenses, costsexpended Defendant defendilgainstthis pafly irr is that purposes, agrecs Defendant not thc prcvailing Defendant action.For these a havercached goodfaithsettlcment. thisactionsincetheparties 15. thc may that agrees theCommission prcsent Agrecd,Jdgua tto Defcndant

notice. and theCourtfor signature entrywithoutfurther 16. jurisdictionoverthis mattcrfor that agrees this Courtshallretain Defendant

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Judgnent. ofthe Agreed thepurposc ofenforcingthc terms

Dated: ,l,/N.^t"r /8

,2005.

RONAL S'|EPHENHOLT t7 t8
l9 2l) 2l executingthe foregoing Consell. personallyappeared beforeme and acknowledged

'(Onatl 5. l-\o\ \ on Ncrp,.[-,gr ,2005, lS

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pcrson lo kDown n]c'

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Approved to form andcontent: as

VES
Attomcy for the Defendant Holt Ronald Slephen l2l2 EastOsbom Arizona85014 Phoenix, 577 l'clcplrone: 602-604-7 l'ax: 602-604-7555

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