United States District Court, D. Nevada
Sohrn, Marsha C. Massey Attorneys for United States
Securities and Exchange Commission.
ORDER ON MOTIONS HEARD AT THE MAY 2, 2019 HEARING
[DOCS. 574, 583, AND 591]
Honorable Miranda Du United States District Court Judge.
matter came to be heard on: (1) Plaintiff, United States
Securities and Exchange Commission's
(“Commission” or “SEC”) Motion to
Enforce Order (the “Motion to Enforce” [Doc.
574]); (2) the Commission's Application for Disposition
Order (the “Disposition Motion” [Doc. 583]); and
(3) Defendant Gary Thomas's (“Defendant” or
“Thomas”) Motion to Modify Payment Plan (the
“Motion to Modify” [Doc. 591]), and this Court
having considered the motions and the responses thereto, as
well as arguments presented at the hearing held on May 2,
2019 (the “Hearing” [Doc. 595]), finds and orders
to Enforce [Doc. 574]
Court finds that, at all relevant times, Defendant Thomas has
been and remains subject to this Court's Order dated
October 23, 2017 (the “Second Payment Plan Order”
[Doc. 544]) and the Order Holding Thomas in Civil Contempt
dated August 23, 2018 (the “Second Contempt
Order” [Doc. 569]).
Court further finds that Defendant Thomas remains in contempt
of this Court's orders pursuant to, inter alia,
the Second Contempt Order.
Court further finds that Defendant Thomas is in breach of the
Second Payment Plan Order and the Second Contempt Order by
failing to make the ordered $5, 000.00 monthly installment
payments due on the first day of each month. Specifically,
the Court finds that Defendant Thomas failed to make the $5,
000 monthly payments to the Commission that were due October
1, 2018, November 1, 2018, December 1, 2018, January 1, 2018,
February 1, 2018, April 1, 2018, and May 1, 2018, despite
having the ability to make these payments.
Based on these findings, and the other reasons placed on the
record by the Court at the Hearing, the Commission's
Motion to Enforce [Doc. 574] is GRANTED.
Defendant Thomas is ORDERED and DIRECTED (a) to continue
making timely monthly $5, 000 payments to the Commission, as
ordered by the Second Payment Plan Order and the Second
Contempt Order, and (b) to cure his payment defaults for the
payments due October 1, 2018, November 1, 2018, December 1,
2018, January 1, 2018, February 1, 2018, April 1, 2018, and
May 1, 2018. Accordingly, Defendant Thomas is ORDERED and
DIRECTED to make the following payments to the Commission to
cure his defaults and purge himself of contempt: (a) $20,
000.00 due June 3, 2019; (b) $20, 000.00 due July 1, 2019;
and (c) $5, 000.00 due on the first day of each month
beginning with July 1, 2019 and continuing each subsequent
month until Defendant Thomas's Judgment [Doc. 86] is
satisfied in full.
Defendant Thomas is ORDERED and DIRECTED to provide proof of
each payment made to counsel for the Commission within three
(3) days of each payment. Such proof may be provided to
Commission's counsel via electronic mail.
Defendant Thomas is ORDERED and DIRECTED to appear personally
at all future hearings in this case.
Because Defendant Thomas remains in contempt of this
Court's orders, it is hereby ORDERED that Defendant
Thomas's failure to comply with any of the provisions set
forth in this Order will result in the Court immediately
ordering the incarceration of Defendant Thomas until he
complies with all terms of this Order. Should Defendant
Thomas be incarcerated for civil contempt of this Courts
orders, within seven (7) days of his incarceration, the Court
will hold a hearing to evaluate Defendant Thomas's
ability to purge his contempt or to establish his inability
to do so.
Motion [Doc. 583]
Because this Court finds that Heymar Irrevocable Trust is an
alter ego and/or nominee of Defendant Thomas, and for the
reasons set forth at the Hearing, the Commission's