Opinion

Securities and Exchange Commission v. SHE Beverage Company, Inc.

Court
District Court, C.D. California
Filed
Apr 28, 2025
Cited by
0 cases
Authority
More cited than 35.0%

The opinion

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:21-cv-07339-CAS-ASx Date April 28, 2025

Title Securities and Exchange Commission v. SHE Beverage Company,

Inc. et al

Present: The Honorable CHRISTINA A. SNYDER

Catherine Jeang Miriam Veliz-Baird N/A

Deputy Clerk Court Reporter / Recorder Tape No.

Attorneys Present for Plaintiffs: Attorneys Present for Defendants:

Stephen Kam Lupe Rose Shelby

Sonya Shelby

Proceedings: ZOOM HEARING RE:

DEFENDANT’S MOTION TO SET ASIDE JUDGMENT,

VACATE BIFURCATION AGREEMENT, AND DISMISS

PROCEEDINGS (Dkt. 115, filed on March 12, 2025)

DEFENDANT’S AMENDED MOTION TO DISMISS (Dkt.

117, filed on March 20, 2025)

DEFENDANT’S MOTION FOR RELIEF FROM JUDGMENT

(Dkt. 119, filed on March 24, 2025)

DEFENDANT’S REQUEST FOR HEARING (Dkt. 121, filed

on March 24, 2025)

I. INTRODUCTION & BACKGROUND

On September 14, 2021, plaintiff United States Securities and Exchange

Commission (“SEC”) filed this action against defendants SHE Beverage, Inc., (“SHE

Beverage’), Lupe L. Rose (“Rose”), Sonja F. Shelby, and Katherine E. Dirden

(collectively, “defendants”). Dkt. 1 at 2. The SEC alleges that defendants violated

Sections 5 and 17(a) of the Securities Act of 1993 (“Securities Act”), 15 U.S.C. §§

77(e)(a), 77(e)(c), 77q(a), and Section 10(b) of the Exchange Act, 15 U.S.C. § 78)(b) and

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:21-cv-07339-CAS-ASx Date April 28, 2025

Title Securities and Exchange Commission v. SHE Beverage Company,

Inc. et al

Rule 10b-5 thereunder, 17 C_F.R. § 240.10b5(a)-(c), by conducting a fraudulent offering

between 2017 and 2019 and raising $15.4 million. Dkt. 1 at 3.

The history and background of this case are well-known to the parties and set forth

in detail in the Court’s December 14, 2023 order. See dkt. 108 at 1-4. The Court briefly

recites the most recent procedural events below.

On September 18, 2023, the Court granted the SEC’s motion for default judgment

against SHE Beverage. Dkt. 98. On December 14, 2023, the Court granted the SEC’s

motion for disgorgement and prejudgment interest, and partially granted the SEC’s

motion for civil penalties. Dkt. 108 at 15. In the December 14, 2023 order, the Court

denied Rose’s request to dismiss the case, which was made in her opposition to the SEC’s

motion. Id. at 6. On January 16, 2024, the Court entered final judgments against all

defendants. Dkts. 110-113.

On January 18, 2024, the U.S. Attorney’s Office for the Central District of

California filed a criminal indictment against defendant Rose, alleging that she “marketed

SHE Beverage to the victim-investors as a successful beverage company [and]... falsely

stated that the money raised... would be used to fund the operations of SHE Beverage,”

when in fact “Rose used the funds personally” to enrich herself, her friends, and her

family. See United States of America v. Lupe Rose, Case No. 2:24-cr-00037-GW-1, dkt.

1 19. The trial in Rose’s criminal case 1s set for September 23, 2025. See id., dkt. 40.

On March 12, 2025, Rose, proceeding pro se, filed a motion in the instant case to

set aside judgment, vacate the bifurcation agreement, and dismiss the proceedings.! Dkt.

115 (Mot. 1”). On March 20, 2025, Rose filed an “amended motion to dismiss.” Dkt.

117 (Mot. 2”). The same day, Rose filed a supplemental memorandum regarding the

SEC expert’s report at issue in this matter.?7 Dkt. 118 (“Mot. 3”). On March 24, 2025,

Rose filed a motion for relief from judgment pursuant to Federal Rule of Civil Procedure

60 (“Rule 60”). Dkt 119 (“Mot. 4”). The same day, Rose filed a notice of clarification of

her recent filings, a notice of or request for a hearing on April 28, 2025, and a declaration

in support of her filings. Dkts. 120, 121, 122. Her notice of clarification states that the

“primary motion for the Court’s consideration” is the Rule 60 motion. Dkt. 120 at 2. On

Rose attached Exhibits A-H and Exhibits J-K to her first motion. See dkt. 115.

? Rose attached Exhibits Z-1, Z-2, and Z-5 to her third motion. See dkt. 118.

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:21-cv-07339-CAS-ASx Date April 28, 2025

Title Securities and Exchange Commission v. SHE Beverage Company,

Inc. et al

March 26, 2025, the SEC filed its opposition to Rose’s motions. Dkt. 123 (“Opp.”). The

same day, Rose filed her reply. Dkt. 124 (“Reply”).

On March 31, 2025, Rose filed an emergency supplemental motion for immediate

relief, a comprehensive restraining order, and potential Supreme Court referral. Dkt. 126.

On April 3, 2025, the Court denied Rose’s motion for emergency relief, indicated that it

construed Rose’s four motions as a Rule 60 motion to set aside the judgment in this case,

and set a motion hearing for April 28, 2025.7 Dkt. 127.

On April 28, 2025, the Court held a hearing. Having carefully considered the

parties’ arguments and submissions, the Court finds and concludes as follows.

I. LEGAL STANDARD

Under Rule 60(b), the court may grant reconsideration of a final judgment and any

order based on: “(1) mistake, surprise, or excusable neglect; (2) newly discovered

evidence; (3) fraud; (4) a void judgment; (5) a satisfied or discharged judgment; or (6)

extraordinary circumstances which would justify relief.” School Dist. No. 1J,

Multnomah County, Or. v. ACandS, Inc., 5 F.3d 1255, 1263 (9th Cir. 1993). Under Rule

60(b)(6), the so-called catch-all provision, the party seeking relief “must demonstrate

both injury and circumstances beyond his control that prevented him from proceeding

with the action in a proper fashion.” Latshaw v. Trainer Wortham & Co., Inc., 452 F.3d

1097, 1103 (9th Cir. 2006). In addition, the Ninth Circuit recently confirmed that “[t]o

receive relief under Rule 60(b)(6), a party must demonstrate extraordinary circumstances

which prevented or rendered him unable to prosecute his case.” Lal v. California, 610

F.3d 518, 524 (9th Cir. 2010). This Rule must be “used sparingly as an equitable remedy

to prevent manifest injustice and is to be utilized only where extraordinary circumstances

prevented a party from taking timely action to prevent or correct an erroneous judgment.”

Id. (quoting United States v. Washington, 394 F.3d 1152, 1157 (9th Cir. 2005)). Any

> The Court provided a courtesy copy of its order denying Rose’s emergency motion to

the Court and all counsel in Rose’s criminal case, “to be certain that Rose’s criminal

defense counsel 1s fully apprised of her motions” in the instant civil case. Dkt. 127 at 2.

Similarly, the Court is providing a courtesy copy of this order to Rose’s criminal defense

counsel.

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘Oo’

Case No. 2:21-cv-07339-CAS-ASx Date April 28, 2025

Title Securities and Exchange Commission v. SHE Beverage Company,

Inc. et al

Rule 60(b) motion must be brought within a reasonable time and no later than one year

after entry of judgment or the order being challenged. See Fed. R. Civ. P. 60(c)(1).

Pursuant to Rule 60(d)(3), the Court may set aside a judgment for “fraud on the

court.” Fed. R. Civ. P. 60(d)(3). The Supreme Court has said that “[o]ut of deference to

the deep-rooted policy in favor of the repose of judgments ..., courts of equity have been

cautious in exercising this power.” Hazel-Atlas Glass Co. v. Hartford-Empire Co., 332

238, 244 (1944). Relief pursuant to this provision is therefore “available only to

prevent a grave miscarriage of justice.” United States v. Beggerly, 524 U.S. 38, 47

(1998). The Court asks whether the fraud at issue “harmed the integrity of the judicial

process.” United States v. Estate of Stonehill, 660 F.3d 415, 444 (9th Cir. 2011).

Il. DISCUSSION

In her first motion, Rose argues that the SEC “willfully ignored” more than 100

pages of accounting documents, including $2.7 million of personal investment, a

financial report audited by the Public Company Accounting Oversight Board, a detailed

ledger, and six verified business locations. Mot. 1 at 2. Rose also asserts that the SEC

“suppressed” legitimate business expenses, including those for research and

development, employee payroll, and operational and marketing costs. Id. at 3. Rose

argues that the SEC’s attorneys threatened her with “reputational destruction,” coerced

her into signing a bifurcation agreement, and prevented a “fair presentation” of financial

documentation. Id. at 4. She states that a recent Supreme Court case, Sec. & Exch.

Comm'n v. Jarkesy, 603 U.S. 109, 140 (2024), shows that the enforcement action against

her was unconstitutional. Id. Further, she states that the referral to the United States

Department of Justice was based on a “fabricated narrative.” Id. She requests that the

Court review the attached accounting statements, invalidate the bifurcation agreement,

“dismiss the current judgment” against her, sanction the SEC for misconduct, and restore

her reputation. Id. at 5.

In her second motion, Rose appears to argue that the SEC “deliberately

suppressed” SHE Beverage’s business portfolio. Mot. 2 at 1. Rose asserts that SHE

Beverage’s “wholly owned subsidiaries and acquisitions” include: a women’s football

league association; Pink Leaf, an entity focused on “CBD, Hemp & Cannabis”: Brandy

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘Oo’

Case No. 2:21-cv-07339-CAS-ASx Date April 28, 2025

Title Securities and Exchange Commission v. SHE Beverage Company,

Inc. et al

Inc., an “on-demand apparel company”; “WFLA TV Studios (Bouyant Studios),” a media

production and content creation enterprise; “SHE MEETS Dating App”; Women’s Sports

Entertainment TV, a streaming platform; Re-life Inc.; Shelby Rose Wines Cider; Mink

Bath Bombs, a personal care and wellness product line; Caffeto, a provider of specialty

coffee and beverage innovation; and “Swapp Technology App.” Id. at 1-6. Rose also

states that SHE Beverage had three real estate holdings, or “corporate housing

properties.” Id. at 6. Rose appears to argue that the expert report of Eric Poer (“Poer’),

relied upon by the SEC to analyze SHE Beverage’s financial records, representations to

investors, and indica of fraud, constitutes “financial analysis misconduct.” Id. at 7. She

asserts that Poer arbitrarily removed 70% of the transactions in the financial records, used

a “selective” time frame, and deliberately excluded legitimate business transactions. Id.

Finally, Rose appears to argue that the Private Placement Memorandum through which

SHE Beverage offered and sold stock to investors included transparent language, stating

that the amounts were an “estimate” and that all risks were disclosed. Id.

In her third motion, titled “supplemental memorandum regarding SEC’s selective

data manipulation and misrepresentation of evidence,” Rose states that Poer admitted to

eliminating data. Mot. 3 at 1. Specifically, Rose asserts that Poer eliminated (1) all

transactions not labelled “SHE Beverage” or “SHE Brand”; (2) all transactions related to

legitimate subsidiary entities; (3) cash inflow transactions; and (4) all transactions outside

of the expert’s “arbitrary time restrictions.” Id. at 1-2. Rose then argues that the SEC

told Rose that she would be able to present her evidence to the Court, but “such evidence

was not allowed.” Id. at 2.

In her fourth motion, Rose argues that relief should be granted under Rule 60(b)(1)

because of mistake and excusable neglect, as she could not respond to this litigation

because of family caregiving responsibilities, limited financial resources, and lack of

legal representation. Mot. 4 at 2. She next argues that her motion should be granted

under Rule 60(b)(2) because of newly discovered evidence, namely, errors in Poer’s

financial reports. Id. Rose then asserts that relief should be granted under Rule 60(b)(3)

because of fraud and misrepresentation, in that the SEC engaged in misconduct through

suppression of exculpatory financial evidence. Id. Further, Rose highlights several cases

overturning SEC judgments, including Jarkesy. Id. at 3. Finally, Rose contends that she

has developed draft legislation to prevent prosecutorial overreach and has made persistent

efforts to challenge the SEC’s claims. Id. at 4.

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:21-cv-07339-CAS-ASx Date April 28, 2025

Title Securities and Exchange Commission v. SHE Beverage Company,

Inc. et al

In opposition, the SEC first argues that Rose’s filings violate Local Rule 7-3,

because she failed to meet and confer; Local Rule 7-20, because she did not include a

proposed order; and Local Rules 7-4 and 7-5, because she did not include a notice of

motion and memorandum of points and authorities. Opp. at 5. The SEC contends that

this provides a basis for striking these filings, regardless of Rose’s pro se status. Id.

Second, the SEC argues that Rose’s motions are untimely, whether construed

under Rules 12(b), 59(e), or 60(b). Id. at 6. The SEC asserts that Rose’s motions were

filed over three years after her answer was filed and 14 months after final judgment was

entered against her. Id. Under Rule 12(b), the SEC argues that Rose was required to file

a motion to dismiss by November 15, 2021, 1.e., when she filed her answer. Id. Under

Rule 59, the SEC contends that Rose was required to file a motion for reconsideration by

February 16, 2024, 1.e., 28 days after entry of judgment. Id. Finally, under Rule

60(b)(1)-(3), the SEC asserts that Rose was required to file a motion for relief from final

judgment by January 16, 2025, 1.e., one year after entry of judgment. Id.

Third, the SEC argues that Rose’s motions are without merit because they repeat

the same arguments and attach a similar set of exhibits as those attached to Rose’s prior

filings. Id. at 7. As construed under Rule 12(b), the SEC contends that the Court has

already ruled on and denied Rose’s motion to dismiss, when Rose submitted “virtually

the same set of unsubstantiated exhibits” in 2023. Id. As construed under Rule 59 or 60,

the SEC asserts that Rose does not present new law, evidence, or the need to correct clear

error. Id. at 8. While Rose does cite Jarkesy as intervening law, the SEC argues that its

holding on the constitutionality of administrative proceedings for fraud claims “has no

bearing on the instant case, which was filed in federal district court.” Id. at 8, n.3.

Fourth, the SEC argues that Rose’s false accusations that the SEC and the United

States Department of Justice “suppress[ed] financial evidence” and “fabricat| ed]

allegations of financial impropriety” should be stricken because they are unsupported and

frivolous. Id. at 9. Fifth, the SEC asserts that Rose’s filings inappropriately include

personal identifying information of specific investors and the amount they invested in

SHE Beverage. Id. The SEC contends that this “sensitive, private” information violates

Local Rule 5.2-1, which requires that “[p|arties shall carefully examine the documents

exhibits, or attachments to be filed with the Court in order to protect any sensitive and

private information.” Id.

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:21-cv-07339-CAS-ASx Date April 28, 2025

Title Securities and Exchange Commission v. SHE Beverage Company,

Inc. et al

In reply, Rose argues that Jarkesy “directly impacts the legitimacy” of the

prosecution against her. Reply at 1. Rose next asserts that her motions are not untimely

because extraordinary circumstances are present, including: “systematic suppression of

exculpatory evidence,” “fabrication of financial allegations,” and “violation of

fundamental due process principles.” Id. at 2. Rose states that her filings “provide

comprehensive accounting documentation” and “expose procedural irregularities.” Id.

Rose argues that SHE Beverage adequately documented its business expenses and that

Poer, the SEC’s expert witness, included only select financial information in his report.

Id. Additionally, Rose asserts that the SEC engaged in “systematic misconduct” in

prosecuting this case. Id. These allegations include: extortion and duress in the

negotiation of the bifurcation agreement, breach of the agreement terms, “character

assassination,” the filing of motions “designed to financially and emotionally exhaust the

defendant,” “willful manipulation of financial documentation,” and “knowingly creating

barriers to fair legal defense.” Id. at 4-6.

The Court finds that Rose’s motions, construed under Rule 60, are untimely and

fail to establish a claim for relief. Rose expressly requests relief pursuant to: (1) Rule

60(b)(1), for mistake and excusable neglect; (2) Rule 60(b)(2), for newly discovered

evidence; and (3) Rule 60(b)(3), for fraud and misrepresentation by the SEC. Mot. 4 at 2.

Rule 60(c) states that “[a] motion under Rule 60(b) must be made within a reasonable

time--and for reasons (1), (2), and (3) no more than a year after the entry of the judgment

or order or the date of the proceeding.” Fed. R. Civ. P. 60(c). Accordingly, Rose was

required to file her motion no more than a year after the entry of judgment in her case.

Final judgment was entered against Rose on January 16, 2024, see dkt. 111, while the

instant motions were filed between March 12, 2025 and March 24, 2025. Because Rose

did not file her motion for relief pursuant to Rule 60(b)(1)-(3) by January 16, 2025, the

Court concludes that her motions are untimely.

Rose does not expressly request relief pursuant to Rule 60(b)(6), which grants

relief from a final judgment for “any other reason that justifies relief” 1f a motion is

brought “within a reasonable time.” Fed. R. Civ. P. 60(b)(6); Fed. R. Civ. P. 60(c)(1).

However, the Supreme Court has established that relief pursuant to Rule 60(b)(6) is only

appropriate when sought on a basis not covered by subsections b(1) through (b)(5).

Gonzales v. Crosby, 545 U.S. 524, 529 (2005). Additionally, Rule 60(b)(6) “‘is to be

utilized only where extraordinary circumstances prevented a party from taking timely

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:21-cv-07339-CAS-ASx Date April 28, 2025

Title Securities and Exchange Commission v. SHE Beverage Company,

Inc. et al

action to prevent or correct an erroneous judgment.’” Fantasyland Video, Inc. v. Cnty. of

San Diego, 505 F.3d 996, 1005 (9th Cir. 2007) (quoting United States v. Alpine Land &

Reservoir Co., 984 F.2d 1047, 1049 (9th Cir.1993)). The Court finds that Rose has

presented no evidence demonstrating the purported extraordinary circumstances she

faced or why she was unable to take timely action. Accordingly, the Court finds that

relief pursuant to Rule 60(b)(6) is also inappropriate in this case.

Even if Rose’s motions were timely filed, the Court finds that Rose’s claims fail on

the merits. The Court addresses each of Rose’s arguments in turn.

As for mistake and excusable neglect, Rose states that her “inability to fully

respond” to the litigation was due to “overwhelming personal caregiving

responsibilities,” limited financial resources, and a lack of legal representation. Mot. 4 at

2. Asa threshold matter, it is not clear what Rose means by her “inability to fully

respond” to the litigation. On March 22, 2023, Rose signed a voluntary bifurcated

consent agreement in which she agreed to be subject to officer-and-director bars and to be

permanently enjoined from future securities law violations. Dkt. 85. On March 29,

2023, the Court entered the proposed consent judgment against Rose. Dkt. 87. After

granting the SEC’s motion for disgorgement, prejudgment interest, and civil penalties

against Rose, the Court entered final judgment against her. Dkt. 111.

To the extent Rose argues that she acted mistakenly and with excusable neglect in

signing the bifurcated consent agreement, the Court finds that relief under Rule 60(b)(1)

is not available. “Rule 60(b)(1) relief is unavailable to parties who simply misunderstand

the legal consequences of their deliberate acts.” Latshaw v. Trainer Wortham & Co., 452

F.3d 1097, 1100 (9th Cir. 2006). “[A] party who simply misunderstands or fails to

predict the legal consequences of his deliberate acts cannot later, once the lesson is

learned, turn back the clock to undo those mistakes.” Id. (quoting Yapp v. Excel Corp.,

186 F.3d 1222, 1231 (10th Cir. 1999)). Because Rose does not provide any evidence that

her decision to sign the agreement was not deliberate and independent, relief is not

justified in these circumstances.

As for newly discovered evidence, the Court agrees with the SEC that the evidence

presented in Rose’s instant motions is similar to that submitted in her opposition to the

SEC’s motion for disgorgement, prejudgment interest, and civil penalties. See dkts. 100,

106. The Court examined this evidence in detail in its December 14, 2023 order,

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘Oo’

Case No. 2:21-cv-07339-CAS-ASx Date April 28, 2025

Title Securities and Exchange Commission v. SHE Beverage Company,

Inc. et al

incorporated here by reference, and found that “Rose has not presented any evidence of

legitimate business expenses that the SEC failed to consider.” See dkt. 108 at 9-11. The

Court is not persuaded by Rose’s argument that the SEC told her that she would be able

to present evidence to the Court, but “such evidence was not allowed.” See Mot. 3 at 2.

Rose presented evidence to the Court in her opposition to the SEC’s motion for

disgorgement, prejudgment interest, and civil penalties. See dkt. 100. Rose was then

permitted to argue at length before the Court at the November 13, 2023 hearing, where

she told the Court that she had “additional evidence” of alleged business expenses. Dkt.

108 at 3. The Court subsequently ordered her to produce “all new documentation relating

to alleged business expenses.” Id. Rose filed thousands of pages of evidence on

November 20, 2023, see dkt. 106, which the Court thoroughly reviewed in its December

14, 2023 order. Dkt. 108 at 9-11. Accordingly, the Court finds that Rose had multiple

opportunities to present evidence and has not presented any new, relevant, and admissible

evidence in the instant motion. Therefore, relief under Rule 60(b)(2) is not warranted.

As for fraud and misrepresentations, Rose asserts that the SEC deliberately

suppressed her “exculpatory financial evidence,” “mischaracterize[ed]|” her business

operations, and “selective[ly] exclude[ed]” legitimate business expenses. Mot. 4 at2. A

plaintiff seeking relief pursuant to Rule 60(b)(3) must prove by clear and convincing

evidence that (1) the prevailing litigants obtained the verdict through fraud,

misrepresentation, or other misconduct, and (2) the conduct complained of prevented the

losing party from fully and fairly presenting the defense. Casey v. Albertson's Inc, 362

F.3d 1254, 1260 (9th Cir. 2004) (citation omitted). It also requires that the fraud “not be

discoverable by due diligence before or during the proceedings.” Id. Rose’s wide-

ranging assertions do not constitute evidence of fraud or misrepresentation by the SEC,

and therefore, Rose has not met her burden to obtain relief under Rule 60(b)(3).

Finally, to the extent that Rose argues that Jarkesy invalidates the judgment against

her and warrants relief pursuant to Rule 60(b)(6), the Court finds that Jarkesy is not

material in these circumstances. To determine whether an intervening change in law

justifies relief under Rule 60(b)(6), courts consider six “well-reasoned principles,”

including (1) the nature of the change in the law; (2) the movant’s diligence; (3) the

parties’ reliance interests in the case’s finality; (4) the delay; (5) the relationship between

the original judgment and the change in the law; and (6) comity. Henson v. Fid. Nat'l

Fin., Inc., 943 F.3d 434, 445-53 (9th Cir. 2019). However, the identified factors are not

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘Oo’

Case No. 2:21-cv-07339-CAS-ASx Date April 28, 2025

Title Securities and Exchange Commission v. SHE Beverage Company,

Inc. et al

“intended to be a rigid or exhaustive list.” Id. at 446. Here, the nature of the purported

change in the law in Jarkesy does not impact the final judgment that Rose seeks to set

aside. Jarkesy held that, when the SEC seeks civil penalties for securities fraud, the

Seventh Amendment of the Constitution entitles the defendant to a jury trial. Jarkesy,

603 U.S. 109, 120 (2024). In this matter, Rose waived her right to a jury trial and her

right to appeal from the entry of judgment when she signed the bifurcated consent

agreement. See dkt. 85 § 5 (“Defendant waives the right, if any, to a jury trial and to

appeal from the entry of the Judgment.”). Therefore, Jarkesy does not constitute “any

other reason that justifies relief’ under Rule 60(b)(6).

Accordingly, the Court finds that Rose is not entitled to relief pursuant to Rule

60(b).

IV. CONCLUSION

In accordance with the foregoing, the Court DENIES Rose’s motions.

IT IS SO ORDERED.

00 : 28

Initials of Preparer OM

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.