OPINION AND ORDER Following the entry of a judgment on consent in favor of plaintiff Securities and Exchange Commission (“SEC”) against defendant Zachary S. Berkey, the SEC now moves for disgorgement, prejudgment interest, and civil monetary penalties.1 For the following reasons, the SEC’s motion is granted as set forth below.I. BACKGROUNDA. Procedural HistoryThe SEC filed a complaint on December 6, 2017, against Berkey and Daniel T. Fischer, alleging that while acting as registered representatives at Four Points Capital Partners LLC (“Four Points”), Berkey and Fischer violated Section 17(a) of the Securities Act of 1933, 15 U.S.C. §77q(a), Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. §78j(b), and 17 C.F.R. §240.10b-5. Complaint, filed Dec. 6, 2017 (Docket # 1) (“Compl.”),
1-4. Following discovery, on September 27, 2018, Berkey and the SEC filed a proposed consent judgment resolving Berkey’s liability. See Judgment as to Defendant Zachary S. Berkey, filed Sept. 27, 2018 (Docket # 31). The court adopted and entered the proposed judgment on October 10, 2018. See Judgment as to Defendant Zachary S. Berkey, filed Oct. 10, 2018 (Docket # 35) (“Consent Judgment”). The Consent Judgment permanently enjoined Berkey from engaging in future violations of the antifraud provisions of the federal securities laws, and ordered that Berkey “pay disgorgement of ill-gotten gains, prejudgment interest thereon, and a civil penalty,” with the amount of disgorgement and civil penalty to be determined by the court upon the SEC’s motion. Id. at 1, 3.On November 4, 2018, the parties consented, pursuant to 28 U.S.C. §636(c) and Federal Rule of Civil Procedure 73, to have the remainder of the case decided by a United States Magistrate Judge. Notice, Consent, and Reference of a Civil Action to a Magistrate Judge, filed Nov. 5, 2018 (Docket # 39). This motion followed.B. Factual BackgroundPer the Consent Judgment, “the allegations of the Complaint shall be accepted as and deemed true by the Court,” and Berkey is “precluded from arguing that he did not violate the federal securities laws as alleged in the Complaint.” Consent Judgment at 3.As alleged in the Complaint, from 2013 through 2014, Berkey was a registered representative of a broker-dealer and was required to have a reasonable basis that his recommendations for trades were suitable for at least some customers. Compl.
