This case was last updated from PACER on 08/03/2021 at 06:31:27 (UTC).

Securities and Exchange Commission v. Live Ventures Incorporated et al

Case Summary

On August 2, 2021, the Securities and Exchange Commission (“SEC” or “Plaintiff”), represented by Cam Ferenbach, Cam Ferenbach and Wendy Pearson, attorneys at the SEC’s Los Angeles regional office, filed a civil enforcement action against Live Ventures Incorporated (“LIVE”), JanOne Inc. (“JOI/ARCA”), John Isaac a/k/a Jon Isaac (“Jon Isaac”), Kingston Diversified Holdings, LLC (“Kingston”), Virland A. Johnson (“Johnson”) (collectively, the “Defendants”), seeking permanent injunctive relief, disgorgement of ill- gotten gains with prejudgment interest, civil penalties, and additional relief. This case was filed in the U.S. District Court in the District of Nevada with Judges James C. Mahan and Cam Ferenbach presiding.

 

In its complaint, the Plaintiff alleged that, “By engaging in the conduct described above, Defendants LIVE and Jon Isaac, directly or indirectly, in the offer or sale of securities, and by the use of means or instruments of transportation or communication in interstate commerce or by use of the mails directly or indirectly, made an untrue statement of material fact or omitted to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.”

 

The Plaintiff also alleged that, “By engaging in the conduct described above, Defendants LIVE and Jon Isaac, directly or indirectly, in the offer or sale of securities, and by the use of means or instruments of transportation or communication in interstate commerce or by use of the mails directly or indirectly, made an untrue statement of material fact or omitted to state a material fact necessary in order to make the statements made, in light of the circumstances in which they were made, not misleading.”

 

There are seventeen claims for relief laid down by the Plaintiff. The first, second, and eighth claims are for alleged materially false or misleading statements in connection with the purchase or sale of securities. The third claim is for alleged fraud in connection with the purchase or sale of securities. The fourth claim is for materially false or misleading statements in connection with the offer and sale of securities. The fifth and ninth claims are for alleged fraud in connection with the offer or sale of securities. The sixth and tenth claims are for allegedly false statements to accountants. The seventh claim is for alleged aiding and abetting violations of section 10(b) of the Exchange Act and Rule 10b-5(b). The eleventh and twelfth claims are for alleged false sarbanes-oxley certification. The thirteenth claim is for alleged failure to file accurate periodical reports. The fourteenth claim is for alleged failure to file accurate periodical reports.  The fifteenth claim is for alleged failure to devise a system of internal accounting controls. The sixteenth claim is for alleged falsification in books and records. The seventeenth claim is for alleged solicitation of proxies in violation of rules and regulations.

 

In its prayer for relief, the Plaintiff has requested the Court for permanent injunctive relief, disgorgement with prejudgment interest, including an order imposing civil penalties against the Defendants pursuant to Section 21(d)(3) of the Exchange Act, 15 U.S.C. § 78u(d)(3) and such further relief to the SEC as the Court deems just. 

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    2:21-CV-01433

  • Filing Date:

    08/02/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Courthouse:

    Nevada District

Judge Details

Presiding Judge

James C. Mahan

Referral Judge

Cam Ferenbach

 

Party Details

Plaintiff

Securities and Exchange Commission

Defendants

JanOne Inc.

John Isaac

Live Ventures Incorporated

Appliance Recycling Centers of America, Inc.

Jon Isaac

Kingston Diversified Holdings, LLC

Virland A. Johnson

Attorney/Law Firm Details

Plaintiff Attorneys

John B Bulgozdy

Attorney at US Securities and Exchange Commission

444 S. Flower Street, Suite 900

Los Angeles, CA 90071

Robert Stillwell

Attorney at Securities and Exchange Commission

444 S. Flower Street, Suite 900

Los Angeles, CA 90071

Wendy Pearson

Attorney at Securities and Exchange Commission

444 S. Flower Street, Suite 900

Los Angeles, CA 90071

 

Court Documents

#5

(#5) Summons Issued as to All Defendants re #1 Complaint. (MR) (Entered: 08/02/2021)

#4

(#4) MOTION to Admit Government Attorney Wendy Pearson by Plaintiff Securities and Exchange Commission. (Bulgozdy, John) (Entered: 08/02/2021)

#3

(#3) MOTION to Admit Government Attorney Robert Stillwell by Plaintiff Securities and Exchange Commission. (Bulgozdy, John) (Entered: 08/02/2021)

#2

(#2) MOTION to Admit Government Attorney John B. Bulgozdy by Plaintiff Securities and Exchange Commission. (Bulgozdy, John) (Entered: 08/02/2021)

1 #6

Summons Virland A. Johnson

1 #5

Summons Kingston Diversified Holdings, LLC

1 #4

Summons John Isaac a/k/a Jon Isaac

1 #3

Summons JanOne, Inc. f/k/a American Recycling Centers of America, Inc.

1 #2

Summons Live Ventures, Inc.

1 #1

Civil Cover Sheet

#1

(#1) COMPLAINT against JanOne Inc. (f/k/a Appliance Recycling Centers of America, Inc.), John Isaac a/k/a Jon Isaac, Virland A. Johnson, Kingston Diversified Holdings, LLC, Live Ventures Incorporated by Securities and Exchange Commission. Proof of service due by 10/31/2021. (Attachments: #1 Civil Cover Sheet, #2 Summons Live Ventures, Inc., #3 Summons JanOne, Inc. f/k/a American Recycling Centers of America, Inc., #4 Summons John Isaac a/k/a Jon Isaac, #5 Summons Kingston Diversified Holdings, LLC, #6 Summons Virland A. Johnson) (Bulgozdy, John) NOTICE of Certificate of Interested Parties requirement: Under Local Rule 7.1-1, a party must immediately file its disclosure statement with its first appearance, pleading, petition, motion, response, or other request addressed to the court. (Entered: 08/02/2021)

 

Docket Entries

  • 08/02/2021
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  • Docket(#5) Summons Issued as to All Defendants re #1 Complaint. (MR) (Entered: 08/02/2021)

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  • 08/02/2021
  • DocketCase randomly assigned to Judge James C. Mahan and Magistrate Judge Cam Ferenbach. (MR) (Entered: 08/02/2021)

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  • 08/02/2021
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  • Docket(#4) MOTION to Admit Government Attorney Wendy Pearson by Plaintiff Securities and Exchange Commission. (Bulgozdy, John) (Entered: 08/02/2021)

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  • 08/02/2021
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  • Docket(#3) MOTION to Admit Government Attorney Robert Stillwell by Plaintiff Securities and Exchange Commission. (Bulgozdy, John) (Entered: 08/02/2021)

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  • 08/02/2021
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  • Docket(#2) MOTION to Admit Government Attorney John B. Bulgozdy by Plaintiff Securities and Exchange Commission. (Bulgozdy, John) (Entered: 08/02/2021)

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  • 08/02/2021
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  • Docket(#1) COMPLAINT against JanOne Inc. (f/k/a Appliance Recycling Centers of America, Inc.), John Isaac a/k/a Jon Isaac, Virland A. Johnson, Kingston Diversified Holdings, LLC, Live Ventures Incorporated by Securities and Exchange Commission. Proof of service due by 10/31/2021. (Attachments: #1 Civil Cover Sheet, #2 Summons Live Ventures, Inc., #3 Summons JanOne, Inc. f/k/a American Recycling Centers of America, Inc., #4 Summons John Isaac a/k/a Jon Isaac, #5 Summons Kingston Diversified Holdings, LLC, #6 Summons Virland A. Johnson) (Bulgozdy, John) NOTICE of Certificate of Interested Parties requirement: Under Local Rule 7.1-1, a party must immediately file its disclosure statement with its first appearance, pleading, petition, motion, response, or other request addressed to the court. (Entered: 08/02/2021)

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