U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22584 / January 3, 2013
Securities and Exchange Commission v. Yan K. Skwara et al., Civil Action No. 12-61078-CIV-Rosenbaum/Seltzer
District Court Enters Final Judgment of Permanent Injunction and Orders a Civil Penalty Against Defendant Yan K. Skwara and Default Judgment Against Defendant US Farms, Inc.
The Commission announced that on January 2, 2013, the United States District Court for the Southern District of Florida entered a Final Judgment of Permanent Injunction by consent, against Defendant Yan K. Skwara enjoining him from violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 ("Exchange Act") and Section 17(a) of the Securities Act of 1933 ("Securities Act"). United States District Judge Robin S. Rosenbaum ordered Yan K. Skwara, CEO, President, CFO, and Chairman of US Farms, Inc., to pay Disgorgement, Prejudgment Interest and a Civil Penalty pursuant to Section 21(d)(3) of the Exchange Act and Section 20(d) of the Securities Act. The Final Judgment orders Defendant Skwara to pay disgorgement in the amount of $28,000, prejudgment interest of $3,372.57 and imposes a civil penalty of $28,000 for a total of $59,372.57.
United States District Judge Robin S. Rosenbaum entered a permanent injunction by default against US Farms, Inc. enjoining them from violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 ("Exchange Act") and Section 17(a) of the Securities Act of 1933 ("Securities Act"). Judge Rosenbaum ordered US Farms, Inc. to pay disgorgement in the amount of $28,000 and prejudgment interest of $3,372.57 for a total of $31,372.57.
The Commission commenced this action by filing its Complaint on June 4, 2012, against Yan K. Skwara and US Farms, Inc. The Complaint alleges that Defendants Skwara and US Farms, Inc. engaged in a fraudulent scheme involving the company's stock, illicit kickbacks, and phony agreements to mask those kickbacks.
For more information on earlier actions in this case, see Litigation Release No. 22389 (June 4, 2012).