`
`IN THE UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF GEORGIA
`ATLANTA DIVISION
`
`SECURITIES AND EXCHANGE COMMISSION,
`
`Plaintiff,
`
` v.
`FLIK,
`COINSPARK,
`RYAN S. FELTON,
`WILLIAM Q. SPARKS, JR.,
`OWEN B. SMITH, and
`CHANCE B. WHITE,
`
`Defendants,
`
`And
`
`HYPERION HOLDINGS LLC,
`STEPHANIE L. BROWN,
`DALE W. FELTON, and
`JENNIFER FELTON,
` Relief Defendants.
`
`
`Case No. 1:20-CV-3739-SCJ
`
`
`
`
`
`
`
`
`PLAINTIFF SECURITIES AND EXCHANGE COMMISSION’S MOTION
`TO ENTER FINAL JUDGMENTS AGAINST DEFENDANTS WILLIAM Q.
`SPARKS, JR., OWEN B. SMITH, AND CHANCE B. WHITE
`
`Plaintiff United States Securities and Exchange Commission (“SEC”)
`
`
`
`respectfully requests that the Court enter the attached Final Judgments as to
`
`Defendants William Q. Sparks, Jr. (“Sparks”), Owen B. Smith (“Smith”), and
`
`Chance B. White (“White”). In support of this motion, the SEC states as follows:
`
`
`
`Case 1:20-cv-03739-SCJ Document 3 Filed 09/11/20 Page 2 of 4
`
`1.
`
`On September 10, 2010, the SEC filed the Complaint against, among
`
`others, Sparks, Smith and White.
`
`2.
`
`Each of these Defendants has agreed to settle this matter.
`
`Accordingly, Sparks, Smith and White have signed Consents, which are attached
`
`with the proposed Final Judgments.
`
`3.
`
`The proposed Final Judgment as to Sparks permanently enjoins him
`
`from violations of Section 5 of the Securities Act of 1933 (the “Securities Act”)
`
`[15 U.S.C. § 77e]; orders Sparks to pay disgorgement in the amount of $25,196,
`
`plus prejudgment interest thereon in the amount of $2,796; orders Sparks to pay a
`
`civil penalty in the amount of $25,000 under Section 20(d) of the Securities Act
`
`[15 U.S.C. § 77t(d)]; and enjoins Sparks, for a period of five years from the date of
`
`Final Judgment, from participating, directly or indirectly, in the issuance, purchase,
`
`offer, or sale of any digital asset securities. See Exhibit 1.
`
`4.
`
`The proposed Final Judgment as to Smith permanently enjoins him
`
`from violations of Sections 5 and 17(b) of the Securities Act [15 U.S.C. §§ 77e,
`
`77q(b)]; orders Smith to pay a civil penalty in the amount of $25,000 under Section
`
`20(d) of the Securities Act [15 U.S.C. § 77t(d)]; and enjoins Smith, for a period of
`
`five years from the date of Final Judgment, from participating, directly or
`
`indirectly, in the issuance, purchase, offer, or sale of any digital asset securities.
`
`See Exhibit 2.
`
`
`
`2
`
`
`
`Case 1:20-cv-03739-SCJ Document 3 Filed 09/11/20 Page 3 of 4
`
`5.
`
`Similarly, the proposed Final Judgment as to White permanently
`
`enjoins him from violations of Sections 5 and 17(b) of the Securities Act [15
`
`U.S.C. §§ 77e, 77q(b)]; orders White to pay a civil penalty in the amount of
`
`$25,000 under Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)]; and enjoins
`
`White, for a period of five years from the date of Final Judgment, from
`
`participating, directly or indirectly, in the issuance, purchase, offer, or sale of any
`
`digital asset securities. See Exhibit 3.
`
`6.
`
`These proposed Final Judgments, which embody the parties’
`
`settlements reached before the filing of this action, are a product of arm’s length
`
`negotiations between the parties and counsel, and, we respectfully submit, are
`
`reasonable, fair, adequate, and in the public interest. See SEC v. Citigroup Global
`
`Markets Inc., 673 F.3d 158, 163-68 (2d Cir. 2012) (discussing the factors to
`
`consider for approving settlements).
`
`
`
`3
`
`
`
`Case 1:20-cv-03739-SCJ Document 3 Filed 09/11/20 Page 4 of 4
`
`7.
`
`Accordingly, the SEC respectfully asks the Court to enter the attached
`
`Final Judgments in this case.
`
`Dated: New York, New York
`
` September 11, 2020
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Of Counsel:
`
`Virginia M. Rosado Desilets
`David H. Tutor
`
`
`
`Respectfully submitted,
`
`
`
`
`
`
`
`
`
`/s/ Richard Hong
`Richard Hong
`SECURITIES AND EXCHANGE COMMISSION
`400 Vesey Street, Suite 400
`New York, NY 10281
`(212) 336-0956 (Hong)
`HongR@sec.gov
`
`CERTIFICATION OF COMPLIANCE
`
`
`This is to certify that the foregoing was prepared using Times New Roman
`14 point font in accordance with Local Rule 5.1 (B).
`
`
`/s/ Richard Hong
`
`
`CERTIFICATE OF SERVICE
`
`
`
`I hereby certify that on this date the foregoing was served on counsel for
`Defendants by via email.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`/s/ Richard Hong
`Securities and Exchange Commission
`
`
`
`4
`
`
Accessing this document will incur an additional charge of $.
After purchase, you can access this document again without charge.
Accept $ Charge
Still Working On It
This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.
Give it another minute or two to complete, and then try the refresh button.
A few More Minutes ... Still Working
It can take up to 5 minutes for us to download a document if the court servers are running slowly.
Thank you for your continued patience.
This document could not be displayed.
We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.
Your account does not support viewing this document.
You need a Paid Account to view this document. Click here to change your account type.
Your account does not support viewing this document.
Set your membership
status to view this document.
With a Docket Alarm membership, you'll
get a whole lot more, including:
- Up-to-date information for this case.
- Email alerts whenever there is an update.
- Full text search for other cases.
- Get email alerts whenever a new case matches your search.
One Moment Please
The filing “” is large (MB) and is being downloaded.
Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.
Your document is on its way!
If you do not receive the document in five minutes, contact support at support@docketalarm.com.
Sealed Document
We are unable to display this document, it may be under a court ordered seal.
If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.
Access Government Site
