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United States District Court for the Central District of California
February 16, 2021, Decided; February 16, 2021, Filed
CIVIL MINUTES - GENERAL
Proceedings: ORDER GRANTING IN PART PLAINTIFF'S MOTION FOR REMEDIES AND JUDGMENT .
Plaintiff Securities and Exchange Commission ("SEC") filed a complaint in this action on November 19, 2015 against (1) Robert Yang and Claudia Kano (collectively "Defendants"), (2) Suncor Fontana, LLC ("Fontana"), Suncor Hesperia, LLC ("Hesperia"), and Suncor Care Lynwood, LLC ("Lynwood") (collectively "Suncor Defendants"), and (3) Yanrob's Medical, Inc. ("Yanrob"), HealthPro Capital Partners, LLC ("HealthPro"), and Suncor Care, Inc. ("Suncor") (collectively "Relief Defendants"). The SEC alleged violations of the Securities Act and the Securities and Exchange Act. In June 2016, each of the defendants and relief defendants entered into consent judgments.
Before the Court is the SEC's motion for remedies and final judgment. For the below reasons, the SEC's motion is GRANTED IN PART.
II. Factual and Procedural Background
Yang is a California resident and a doctor licensed to practice medicine in California.1 At all relevant times, [*2] Yang was the owner/president of the Suncor Defendants and Relief Defendants.
Kano is a California resident who, at all relevant times, was the senior vice president and/or manager of the Suncor Defendants and Relief Defendants. Kano also served as the administrative manager of a medical practice that Yang operated through Yanrob, one of the relief defendants.
Yang and Kano formed the Suncor Defendants to raise money from investors. The funds were allegedly going to be used to develop sub-acute nursing care facilities. From November 2012 through April 2014, Yang and Kano raised approximately $20 million from investors in China2 through three separate securities offerings.
The offerings for each Suncor Defendant contained documents related to the issuing entity (i.e., the relevant Suncor Defendant that the investor was investing in). Those documents included operating agreements for the issuing entity, a subscription agreement, and an escrow agreement. Yang and Kano executed the operating agreements, subscription agreements, and escrow agreements on behalf of the issuing entities. Yang and Kano also had ultimate authority over statements in the offering materials that were issued by the [*3] Suncor defendants to investors. The subscription agreements for each issuing entity state that the relevant Suncor Defendant was "limited to only investing" in the specific medical facility associated with the offering.
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
2021 U.S. Dist. LEXIS 64413 *; 2021 WL 1234886
SEC v. Robert Yang et al.
Prior History: United States SEC v. Yang, 824 Fed. Appx. 445, 2020 U.S. App. LEXIS 24837, 2020 WL 4530630 (9th Cir. Cal., Aug. 6, 2020)
disgorgement, investors, funds, prejudgment interest, civil penalty, net profit, offerings, jointly, joint and several liability, severally liable, collateral, violations, DECREED, further order, accrued, legitimate expense, calculate, documents, final judgment, Declaration, Borrowers, amounts, deposit, argues, offset, personal loan, fraudulent, ill-gotten, remedies, future violations