Securities and Exchange Commission v. John Mark Marino

Summary

The United States District Court for the Central District of California entered a default final judgment against John Mark Marino in an enforcement action brought by the Securities and Exchange Commission. The judgment permanently enjoins Marino from violating specified federal securities laws, participating in certain unregistered securities offerings, and serving as an officer or director of certain issuers, and requires payment of $323,547.52 in disgorgement, prejudgment interest, and civil penalties.

Holdings

1. Default judgment against Marino was appropriate and the SEC's application for default judgment was granted.
2. Marino was permanently restrained and enjoined from directly or indirectly violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.
3. Marino was permanently restrained and enjoined from directly or indirectly violating Section 17(a) of the Securities Act of 1933 in the offer or sale of securities.
4. Marino was permanently restrained and enjoined from participating directly or indirectly in the issuance, purchase, offer, or sale of securities in an unregistered offering, subject to an exception for securities transactions in his own personal account.
5. Marino was prohibited from acting as an officer or director of an issuer subject to the specified Exchange Act registration or reporting requirements.
6. Marino was held liable for $65,700 in disgorgement, $21,396.52 in prejudgment interest, and a $236,451 civil penalty, for a total payment of $323,547.52 to the SEC within 30 days after entry of judgment.

Questions Presented

1. Whether default judgment should be entered against Marino under Federal Rule of Civil Procedure 55 and the Eitel factors.
2. What injunctive, officer-and-director, disgorgement, prejudgment-interest, and civil-penalty remedies should be imposed upon entry of default judgment.

Disposition

other