Gartner v. Securities & Exchange Commission

913 F. Supp. 1372, 1995 U.S. Dist. LEXIS 20124, 1995 WL 795670
CourtDistrict Court, C.D. California
DecidedNovember 27, 1995
DocketCV-94-8410-RAP (RMC)
StatusPublished
Cited by3 cases

This text of 913 F. Supp. 1372 (Gartner v. Securities & Exchange Commission) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gartner v. Securities & Exchange Commission, 913 F. Supp. 1372, 1995 U.S. Dist. LEXIS 20124, 1995 WL 795670 (C.D. Cal. 1995).

Opinion

JUDGMENT

PAEZ, District Judge.

Pursuant to the Order of the Court approving the recommendations of the United States Magistrate Judge, and adopting the same as the facts and conclusions of law herein,

IT IS ADJUDGED that pursuant to Fed. R.Civ.P. 54(b) Judgment be entered dismissing with prejudice the Complaint and action against defendants Securities and Exchange Commission, Manuel Real, Rory C; Flynn, C.J. Rinaldi, and Cheryl Searboro.

*1375 ORDER ADOPTING REPORT AND RECOMMENDATION OF UNITED STATES MAGISTRATE JUDGE

CHAPMAN, United States Magistrate Judge.

Pursuant to 28 U.S.C. Section 636, the Court has reviewed the Complaint and other papers along with the attached Report and Recommendation of the United States Magistrate Judge, and has made a de novo determination of the Report and Recommendation.

IT IS ORDERED that:

(1) the United States Magistrate Judge’s Report and Recommendation is approved and adopted in its entirety; except as modified in paragraphs 7a and 9.
(2) the Report and Recommendation is adopted as the findings of fact and conclusions of law herein;
(3) the United States of America is substituted for defendants Rory C. Flynn, C.J. Rinaldi, Cheryl Scarboro, and Aaron Ward (except as to Aaron Ward on the 4th claim to the extent it asserts a Bivens claim) and the caption in this case is corrected to read: Garner v. United States of America, et al.;
(4) Claims # 1 and # 2, the causes of action for violation of the double jeopardy clause of the Fifth Amendment and the excessive fines clause of the Eighth Amendment, are dismissed with prejudice;
(6)based on judicial immunity, the Complaint and action are dismissed with prejudice as to defendant Judge Manuel Real, and Judgment should be entered accordingly;
(6) based on sovereign immunity, the Complaint and action are dismissed with prejudice as to defendant Securities and Exchange Commission, and Judgment should be entered accordingly;
(7) the Complaint and action are dismissed as to defendants Rory C. Flynn, C.J. Rinaldi, and Cheryl Scarboro due to lack of subject matter jurisdiction, and Judgment should be entered accordingly; and
(7a) Claims 1, 2, & 3 are dismissed as to defendant Aaron Ward for lack of subject matter jurisdiction;
(8) Claim #4, the cause of action against defendant Ward for illegal search and seizure of plaintiffs sister’s home, is dismissed with leave to amend; provided plaintiff shall file a First Amended Complaint setting forth only this claim, within thirty (30) days from the date of the order herein. Failure to timely file .a First Amended Complaint may result in a recommendation that this action be dismissed with prejudice. The First Amended Complaint shall cure the deficiencies noted herein, shall be complete in itself, and shall not add new claims or defendants;
(9) The Court finds that there is no just reason to delay entry of final judgment against plaintiff and in favor of defendants Manuel Real, Securities and Exchange Commission, Rory C. Flynn, C.J. Rinaldi and Cheryl Scarboro pursuant to Fed.R.Civ.P. 54(b).

IT IS FURTHER ORDERED that the Clerk shall serve forthwith a copy of this Order and the Judgment of this date on the parties.

REPORT AND RECOMMENDATION OF A UNITED STATES MAGISTRATE JUDGE

This report and recommendation is submitted to the Honorable Richard A. Paez, United States District Judge, pursuant to the provisions of 28 U.S.C. § 636 and General Order 194 of the United States District Court for the Central District of California.

BACKGROUND

On December 15, .1994, Michael Gartner (hereafter “plaintiff’), a federal prisoner proceeding pro se and in forma pauperis, filed this Bivens action 1 against defendants Securities and Exchange Commission (“SEC”), *1376 three SEC attorneys, United States District Judge Manuel Real, and Aaron Ward, Postal Inspector. By this action, plaintiff seeks “to reverse” a civil judgment against him in SEC v. Interlink Data Network, Inc., District Court for the Central District of California, Case No. CV 93-3073R, 1993 WL 603274 (“the SEC action”) 2 , a civil disgorgement action, on the grounds the SEC action violated the double jeopardy clause of the Fifth Amendment and the excessive fines clause of the Eighth Amendment, and seeks damages for libel, slander and “outrageous government conduct” by defendants.

In the SEC action, plaintiff failed to answer the complaint and refused to respond to any of the SEC’s discovery requests, claiming- his Fifth Amendment privilege against self-incrimination. By order dated August 26, 1993, the district court (defendant Real) held plaintiff to be in contempt for violating injunctions freezing his assets, and ordered plaintiff taken into custody. The district court ordered that a default judgment be entered against plaintiff and, subsequently, that summary judgment be granted for the SEC. The district court found that plaintiff violated the registration provisions of the Securities Act of 1933 (15 U.S.C. Sections 77e(a) and (c)), the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934 (15 U.S.C. Sections 77q(a), 78j(b)), and the broker-dealer provisions of the Securities Exchange Act of 1934 (15 U.S.C. Section 78o(a)), and issued permanent injunctions prohibiting the defendants from further violations of the Securities and Exchange Acts. The district court also ordered plaintiff to disgorge assets totalling $12,285,035.00, as a reasonable approximation of the assets he and his companies had fraudulently obtained, and to pay prejudgment interest.

The district court, in an unpublished opinion, details the facts underlying the judgment against plaintiff in the SEC action. 3 Summarily stated, the district court held that plaintiff, the company he founded, Interlink, and an alter-ego company sold unregistered securities through bogus public offerings.

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Bluebook (online)
913 F. Supp. 1372, 1995 U.S. Dist. LEXIS 20124, 1995 WL 795670, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gartner-v-securities-exchange-commission-cacd-1995.