Case 3:15-cv-01760-JAM Document 44-1 Filed 10/03/17 Page 1 of 7

UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT
___________________________________________
)
)
)
Plaintiff,
)
)
v.
)
)
HOMERO JOSHUA GARZA,
)
GAW MINERS, LLC, and
)
ZENMINER, LLC (d/b/a ZEN CLOUD),
)
)
Defendants.
)
___________________________________________ )

SECURITIES AND EXCHANGE COMMISSION,

Case No. 3:15-CV-1760-JAM

[PROPOSED]
FINAL JUDGMENT AS TO DEFENDANT HOMERO JOSHUA GARZA
The Securities and Exchange Commission having filed a Complaint and Defendant
Homero Joshua Garza (“Garza” or “Defendant”) having entered a general appearance; consented
to the Court’s jurisdiction over Defendant and the subject matter of this action; consented to
entry of this Final Judgment; pled guilty to wire fraud in the related criminal case United States
v. Homero Joshua Garza, Crim. No. 17-cr-158-RNC, waived findings of fact and conclusions of
law; and waived any right to appeal from this Final Judgment:

I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the
Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5
promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of

 Case 3:15-cv-01760-JAM Document 44-1 Filed 10/03/17 Page 2 of 7

interstate commerce, or of the mails, or of any facility of any national securities exchange, in
connection with the purchase or sale of any security:
(a)

to employ any device, scheme, or artifice to defraud;

(b)

to make any untrue statement of a material fact or to omit to state a material fact
necessary in order to make the statements made, in the light of the circumstances
under which they were made, not misleading; or

(c)

to engage in any act, practice, or course of business which operates or would
operate as a fraud or deceit upon any person.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s
officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or
participation with Defendant or with anyone described in (a).

II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933
(the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any
means or instruments of transportation or communication in interstate commerce or by use of the
mails, directly or indirectly:
(a)

to employ any device, scheme, or artifice to defraud;

(b)

to obtain money or property by means of any untrue statement of a material fact
or any omission of a material fact necessary in order to make the statements

2

 Case 3:15-cv-01760-JAM Document 44-1 Filed 10/03/17 Page 3 of 7

made, in light of the circumstances under which they were made, not misleading;
or
(c)

to engage in any transaction, practice, or course of business which operates or
would operate as a fraud or deceit upon the purchaser.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s
officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or
participation with Defendant or with anyone described in (a).

III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is permanently restrained and enjoined from violating Section 5 of the Securities Act [15 U.S.C.
§ 77e] by, directly or indirectly, in the absence of any applicable exemption:
(a)

Unless a registration statement is in effect as to a security, making use of any
means or instruments of transportation or communication in interstate commerce
or of the mails to sell such security through the use or medium of any prospectus
or otherwise;

(b)

Unless a registration statement is in effect as to a security, carrying or causing to
be carried through the mails or in interstate commerce, by any means or
instruments of transportation, any such security for the purpose of sale or for
delivery after sale; or

(c)

Making use of any means or instruments of transportation or communication in

3

 Case 3:15-cv-01760-JAM Document 44-1 Filed 10/03/17 Page 4 of 7

interstate commerce or of the mails to offer to sell or offer to buy through the use
or medium of any prospectus or otherwise any security, unless a registration
statement has been filed with the Commission as to such security, or while the
registration statement is the subject of a refusal order or stop order or (prior to the
effective date of the registration statement) any public proceeding or examination
under Section 8 of the Securities Act [15 U.S.C. § 77h].
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s
officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or
participation with Defendant or with anyone described in (a).

IV.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
and any entity he owns or controls, are permanently restrained and enjoined from directly or
indirectly participating in the issuance, offer, or sale of any security, provided however that such
an injunction shall not prevent Defendant from purchasing or selling securities solely for his own
account or the accounts of his spouse or minor children.
V.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is liable for disgorgement of $9,182,000, representing sums gained as a result of the conduct
alleged in the Complaint, together with prejudgment interest thereon in the amount of $742,774,.
Defendant’s payment of disgorgement is deemed satisfied by the order of restitution that will be
4

 Case 3:15-cv-01760-JAM Document 44-1 Filed 10/03/17 Page 5 of 7

entered against him when he is sentenced in the related criminal case United States v. Homero
Joshua Garza, Crim. No. 17-cr-158-RNC (D. Conn.).
Defendant shall satisfy his obligation to pay prejudgment interest by paying $742,774 to
the Securities and Exchange Commission within six months after entry of this Final Judgment.
Defendant may transmit payment electronically to the Commission, which will provide detailed
ACH transfer/Fedwire instructions upon request. Payment may also be made directly from a
bank account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm.
Defendant may also pay by certified check, bank cashier’s check, or United States postal money
order payable to the Securities and Exchange Commission, which shall be delivered or mailed to
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
and shall be accompanied by a letter identifying the case title, civil action number, and name of
this Court; Garza as a defendant in this action; and specifying that payment is made pursuant to
this Final Judgment.
Defendant shall simultaneously transmit photocopies of evidence of payment and case
identifying information to the Commission’s counsel in this action. By making this payment,
Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part
of the funds shall be returned to Defendant.
The Commission shall hold the funds (collectively, the “Fund”) and may propose a plan
to distribute the Fund subject to the Court’s approval, including a plan to remit the funds to the
United States Attorney’s Office for payment to the victims identified in the order of restitution
that will be entered against defendant when he is sentenced in United States v. Homero Joshua
5

 Case 3:15-cv-01760-JAM Document 44-1 Filed 10/03/17 Page 6 of 7

Garza. The Court shall retain jurisdiction over the administration of any distribution of the
Fund. If the Commission staff determines that the Fund will not be distributed, the Commission
shall send the funds paid pursuant to this Final Judgment to the United States Treasury.
The Commission may enforce the Court’s judgment for disgorgement and prejudgment
interest by moving for civil contempt (and/or through other collection procedures authorized by
law) at any time after 14 days following the due date of Defendant’s payments pursuant to this
Final Judgment. Defendant shall pay post judgment interest on any delinquent amounts pursuant
to 28 U.S.C. §1961.

VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of
exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. §523, the
allegations in the complaint are true and admitted by Defendant, and further, any debt for
disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this
Final Judgment or any other judgment, order, consent order, decree or settlement agreement
entered in connection with this proceeding, is a debt for the violation by Defendant of the federal
securities laws or any regulation or order issued under such laws, as set forth in Section
523(a)(19) of the Bankruptcy Code, 11 U.S.C. §523(a)(19).
VII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.

VIII.
There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil
6

 Case 3:15-cv-01760-JAM Document 44-1 Filed 10/03/17 Page 7 of 7

Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.

Dated: ______________, 2017
____________________________________
UNITED STATES DISTRICT JUDGE

7