Securities and Exchange Commission v. John Mark Marino, Jason “Jai” Johnson, Abraham Borenstein, and Anthony Brown

Summary

This document is a federal district court final judgment entered on the Securities and Exchange Commission’s application for default judgment against Defendant Jason “Jai” Johnson. The judgment permanently enjoins violations of federal securities laws and participation in unregistered securities offerings, and orders payment of $5,840 in disgorgement, $1,901.90 in prejudgment interest, and a $20,000 civil penalty. The court retains jurisdiction to enforce the judgment.

Holdings

1. Default judgment was appropriate, and the SEC’s application for default judgment was granted.
2. Johnson was permanently restrained and enjoined from directly or indirectly violating Section 10(b) of the Exchange Act and Rule 10b-5 in connection with the purchase or sale of securities.
3. Johnson was permanently restrained and enjoined from directly or indirectly violating Section 17(a) of the Securities Act in the offer or sale of securities.
4. Johnson was permanently restrained and enjoined from directly or indirectly participating in the issuance, purchase, offer, or sale of securities in an unregistered offering, except for purchases or sales for his own personal account.
5. Johnson was ordered to pay $5,840 in disgorgement, $1,901.90 in prejudgment interest, and a $20,000 civil penalty, for a total payment of $27,741.90 to the SEC within 30 days after entry of the final judgment.

Questions Presented

1. Whether the SEC was entitled to default judgment against Jason “Jai” Johnson under Federal Rule of Civil Procedure 55, Local Rule 55-1, and the Eitel factors.
2. What injunctive and monetary remedies were appropriate upon entry of default judgment for the alleged federal securities-law violations.

Disposition

other