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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

10 11 SECURITIES AND EXCHANGE Case No. 2:18-cv-08497-FWS-E 12 COMMISSION,

13 Plaintiff, Hon. Fred W. Slaughter 14 vs. FINAL JUDGMENT AS TO 15 DEFENDANT RYAN MORGAN

ERIC J. “EJ” DALIUS, ET AL.

16 EVANS

Defendants. 17 18

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22 23 24 25 26 27 1 The Securities and Exchange Commission having filed a Complaint and 2 Defendant Ryan Morgan Evans having entered a general appearance; consented to 3 the Court’s jurisdiction over Defendant and the subject matter of this action; 4 consented to entry of this Final Judgment without admitting or denying the 5 allegations of the Complaint (except as to jurisdiction, his violation of Section 5 of 6 the Securities Act of 1933 [15 U.S.C. § 77e] as acknowledged in the Consent of 7 Ryan Morgan Evans and except as otherwise provided herein in paragraph VI); 8 waived findings of fact and conclusions of law; and waived any right to appeal 9 from this Final Judgment: 10 I. 11 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant 12 is permanently restrained and enjoined from violating, directly or indirectly, 13 Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 14 U.S.C. § 78j(b)] and Rule 10b-5(b) promulgated thereunder [17 C.F.R. § 240.10b- 15 5(b)], by using any means or instrumentality of interstate commerce, or of the 16 mails, or of any facility of any national securities exchange, in connection with the 17 purchase or sale of any security: 18 (b) to make any untrue statement of a material fact or to omit to state a 19 material fact necessary in order to make the statements made, in the light of 20 the circumstances under which they were made, not misleading. 21 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 22 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 23 binds the following who receive actual notice of this Final Judgment by personal 24 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 25 attorneys; and (b) other persons in active concert or participation with Defendant 26 or with anyone described in (a). 27 1 II. 2 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 3 that Defendant is permanently restrained and enjoined from violating Section 17(a) 4 of the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the 5 offer or sale of any security by the use of any means or instruments of 6 transportation or communication in interstate commerce or by use of the mails, 7 directly or indirectly: 8 (2) to obtain money or property by means of any untrue statement of a 9 material fact or any omission of a material fact necessary in order to make 10 the statements made, in light of the circumstances under which they were 11 made, not misleading; or 12 (3) to engage in any transaction, practice, or course of business which 13 operates or would operate as a fraud or deceit upon the purchaser. 14 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 15 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 16 binds the following who receive actual notice of this Final Judgment by personal 17 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 18 attorneys; and (b) other persons in active concert or participation with Defendant 19 or with anyone described in (a). 20 III. 21 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 22 that Defendant is permanently restrained and enjoined from violating Section 5 of 23 the Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any 24 applicable exemption: 25 (a) Unless a registration statement is in effect as to a security, making use 26 of any means or instruments of transportation or communication in 27 interstate commerce or of the mails to sell such security through the 1 use or medium of any prospectus or otherwise; 2 (b) Unless a registration statement is in effect as to a security, carrying or 3 causing to be carried through the mails or in interstate commerce, by 4 any means or instruments of transportation, any such security for the 5 purpose of sale or for delivery after sale; or 6 (c) Making use of any means or instruments of transportation or 7 communication in interstate commerce or of the mails to offer to sell 8 or offer to buy through the use or medium of any prospectus or 9 otherwise any security, unless a registration statement has been filed 10 with the Commission as to such security, or while the registration 11 statement is the subject of a refusal order or stop order or (prior to the 12 effective date of the registration statement) any public proceeding or 13 examination under Section 8 of the Securities Act [15 U.S.C. § 77h]. 14 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 15 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 16 binds the following who receive actual notice of this Final Judgment by personal 17 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 18 attorneys; and (b) other persons in active concert or participation with Defendant 19 or with anyone described in (a). 20 IV. 21 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 22 that pursuant to Section 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(5)], 23 Defendant is permanently restrained and enjoined from offering, operating, or 24 participating in a pyramid scheme defined for purposes of this order as any 25 marketing or sales program wherein a participant is compensated or promised 26 compensation solely or primarily (a) for inducing another person to become a 27 1 participant in the program, or (b) if such induced person induces another to become 2 a participant in the program.1 3 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as 4 provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also 5 binds the following who receive actual notice of this Final Judgment by personal 6 service or otherwise: (a) Defendant’s officers, agents, servants, employees, and 7 attorneys; and (b) other persons in active concert or participation with Defendant 8 or with anyone described in (a). 9 V. 10 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED 11 that Defendant is liable for disgorgement of $175,000, representing net profits 12 gained as a result of the conduct alleged in the Complaint, together with 13 prejudgment interest thereon in the amount of $52,129, and a civil penalty in the 14 amount of $111,614 pursuant to Section 20(d) of the Securities Act and Section 15 21(d)(3) of the Exchange Act. Defendant shall satisfy this obligation by paying 16 $338,743 to the Securities and Exchange Commission within 30 days after entry of 17 this Final Judgment. 18 Defendant may transmit payment electronically to the Commission, which 19 will provide detailed ACH transfer/Fedwire instructions upon request. Payment 20 may also be made directly from a bank account via Pay.gov through the SEC 21 website at http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by 22 certified check, bank cashier’s check, or United States postal money order payable 23 to the Securities and Exchange Commission, which shall be delivered or mailed to: 24 /// 25 1 See In re Koscot Interplanetary, Inc., 86 F.T.C. 1106 (1975); SEC v. Glenn W. 26 Turner Enterprises, Inc., 474 F.2d 476 (9th Cir. 1973); Webster v. Omnitrition 27 Int’l, Inc., 79 F.3d 776 (9th Cir. 1996) and subsequent cases. 1 Enterprise Services Center Accounts Receivable Branch 2 6500 South MacArthur Boulevard 3 Oklahoma City, OK 73169 4 and shall be accompanied by a letter identifying the case title, civil action number, 5 and name of this Court; Ryan Morgan Evans as a defendant in this action; and 6 specifying that payment is made pursuant to this Final Judgment. 7 Defendant shall simultaneously transmit photocopies of evidence of 8 payment and case identifying information to the Commission’s counsel in this 9 action. By making this payment, Defendant relinquishes all legal and equitable 10 right, title, and interest in such funds and no part of the funds shall be returned to 11 Defendant. 12 The Commission may enforce the Court’s judgment for disgorgement and 13 prejudgment interest by using all collection procedures authorized by law, 14 including, but not limited to, moving for civil contempt at any time after 30 days 15 following entry of this Final Judgment. 16 The Commission may enforce the Court’s judgment for penalties by the use 17 of all collection procedures authorized by law, including the Federal Debt 18 Collection Procedures Act, 28 U.S.C. § 3001 et seq., and moving for civil 19 contempt for the violation of any Court orders issued in this action. Defendant 20 shall pay post judgment interest on any amounts due after 30 days of the entry of 21 this Final Judgment pursuant to 28 U.S.C. § 1961. The Commission shall hold the 22 funds, together with any interest and income earned thereon (collectively, the 23 “Fund”), pending further order of the Court. 24 The Commission may propose a plan to distribute the Fund subject to the 25 Court’s approval. Such a plan may provide that the Fund shall be distributed 26 pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act 27 1 of 2002. The Court shall retain jurisdiction over the administration of any 2 distribution of the Fund and the Fund may only be disbursed pursuant to an Order 3 of the Court. 4 Regardless of whether any such Fair Fund distribution is made, amounts 5 ordered to be paid as civil penalties pursuant to this Judgment shall be treated as 6 penalties paid to the government for all purposes, including all tax purposes. To 7 preserve the deterrent effect of the civil penalty, Defendant shall not, after offset or 8 reduction of any award of compensatory damages in any Related Investor Action 9 based on Defendant’s payment of disgorgement in this action, argue that he is 10 entitled to, nor shall he further benefit by, offset or reduction of such compensatory 11 damages award by the amount of any part of Defendant’s payment of a civil 12 penalty in this action (“Penalty Offset”). If the court in any Related Investor 13 Action grants such a Penalty Offset, Defendant shall, within 30 days after entry of 14 a final order granting the Penalty Offset, notify the Commission’s counsel in this 15 action and pay the amount of the Penalty Offset to the United States Treasury or to 16 a Fair Fund, as the Commission directs. Such a payment shall not be deemed an 17 additional civil penalty and shall not be deemed to change the amount of the civil 18 penalty imposed in this Judgment. For purposes of this paragraph, a “Related 19 Investor Action” means a private damages action brought against Defendant by or 20 on behalf of one or more investors based on substantially the same facts as alleged 21 in the Complaint in this action. 22 VI. 23 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely 24 for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy 25 Code, 11 U.S.C. §523, the allegations in the complaint are true and admitted by 26 Defendant, and further, any debt for disgorgement, prejudgment interest, civil 27 penalty or other amounts due by Defendant under this Final Judgment or any other 1 judgment, order, consent order, decree or settlement agreement entered in 2 ||connection with this proceeding, is a debt for the violation by Defendant of the 3 || federal securities laws or any regulation or order issued under such laws, as set 4 || forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19). 5 VII. 6 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this 7 || Court shall retain jurisdiction of this matter for the purposes of enforcing the terms 8 this Final Judgment. 9 10 1 Lo LS /—_ 2 Dated: July 19, 2023 Hon. Fred W. Slaughter 13 UNITED STATES DISTRICT JUDGE 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28