Securities and Exchange Commission v. Graham et al
Filing
186
FINAL ORDER OF DISMISSAL. Signed by Senior Judge James Lawrence King on 5/12/2014. (jw)
UNI
TED STATES DI
STRI COURT
CT
SOUTH ERN DI
STRI OF FLO RI
CT
DA
K EY W EST D I SI N
VI O
CASE NO.1 - 001 - V- NG
3 1 1 CI Kl
SECURI ES AN D EX CH AN GE C OM M I ON ,
TI
SSI
Pl itf,
an if
VS.
BARRY J. RAHAM ,
G
FRED DAVI CLA IK , R.A/ A DAVE CLA RK ,
S
t J , K/
CRI
STAL R.COLEM AN, K/ CRI
A/ A
STAL CLARK,
DAVI w . dw ARz, nd
D
scl
a
RI
CKY LYNN STOKES,
De e nt .
f nda s
/
FI
NAL ORDER O F DI I
SM SSAL
THI M ATTER c e be or t Cour upon De e n s Fr d Da s Cl J .a
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n
b t teClr s MS a d S h r' MS wh n irso d dt pr s Dee a t a a sM S ( #1 1, ih
oh h ak ' J n c wazs J e t ep n e o o e fnd n Grh m' J DE 3 ) whc
was smpl a Notc a i t a g
i y
ie doptng he r ument ma by aloft r pr e e defnda s i t r pr vi l tld
s de
l
he e es ntd e nt n hei e ousy ie
M SJ .Acc di yst a gumen sr s d by e h oft defndans i t rr pe tve M sl --eve t e r s i
S
or ngl he r
t aie
ac
he e t n hei es c i
s
n hos aied n
t Clr 'M SJa Sc r sM SJt w hi no r pons wa diecl tld- havebee f l r s
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nd hwaz'
o ch
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enda
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enda s ied ot
f t Re p n e i Op o io t teS SMS (e Dee a tF e Da i Clr , r, itlClr ,a dDa i W .
ol s o ss n p st n o h EC' J s e fnd n rd vs ak J.Crsa ak n vd
r
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S h r ' Re p ne i Op o io t ( e S SMS )a DE /1 2;Dee a tRik Ly n So e 'Op o iint
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i
h
fnd n c y n tk s p sto o
( eSE SMS Ia DE #1 7 c rce b DE #1 ;a d Dee d n Bar J Grha sOp o iin t Ih SEC'
t C' J t
h
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o
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MS )tDE#1 0, n Dee d n Bar J Grh m' Noieo J id ri teRep ns a Ad pin i Op sto
Ja
3 a d fn a t ry . a a s t f on e n h s o e nd o t n po i n
c
o
i
t tePlitf' Cli a DE #1 4 . anifSEC fld attlo fu Re l st d fn a t'fu Rep n e i
o h ani s ams t
f
3 ) Plit
f
ie oa f o r pi o ee d ns o r s o s s n
e
Op sto (e DE #1 6;DE /1 8 DE #14;a d DE /1 0 . Co r h sc rf l u tn ld rviwe ,a d
po i n s e
i
4
/4 ;
5 n
/6 ) The u t a aeul na ge , e e d n
y
f l consdeedt swe offlngsi isdetr nai oft mat sa e s d he en.
uly
i r hi b ii n t e mi ton he ter ddr s e r i
Th c nr lng is e o wheh r t e Co r a j rs it n t d tr n t cams
e o tol su f te h u th s u idci o eemi e he li
i
o
br htby Pl i if SEC a i tt fve i vi lDe e nt i t s ca e wa t prm a y
oug
antf
ga ns he i ndi dua f nda s n hi s
s he i r
f us of or l a g e by t pa te on M a c 20,201 The Cou tt t mater unde
oc
a r um nt
he ris
rh
4.
r ook he
t
r
a s nta t c uson oft he rng,2 and t sOr r i lmie t t de e m i ton of
dvieme t he oncl i
he a i
hi de s i t d o he t r na i
t tsng eis .3Ass tf t be o , t Cour fndst t by ope ai n oft fve ye rsaut of
ha i l s ue
e orh l w he
t i ha ,
r to
he i - a t t e
l tto sc nan d a 28 U. C.j 2 6 ,i lc s b e tmatrj rs ito o e t SEC'
i ain o tie t
mi
S.
4 2 t a ks u j c- te u idcin v r he
S
ca msag ns e c oft fve de e nt i t sc e,a t Cour m us t r f e dimist s
li
ai t a h he i
f nda s n hi as nd he
t t he e or s s hi
c s wi p eu ie
a e t rj dc .
h
1 BACK GROUND
.
I t s c s ,t SEC pr e st t l ofa f -e chi gr tper tat by de e nt
n hi a e he
es nt he ae
arr a ng af per ed
f nda s
upon upwar of 1400 uns pe tng i sor a t t t of m or t n $300 m ilon.
ds
,
us c i nve t s nd o he une
e ha
li
Ac or ng t t SEC,defnda sdiecl a t oug avas we ofenttescoleci l known
c di o he
e nt r ty, nd hr h
t b
ii
l tve y
asCa Cl Re orsa M ai s(% Cl ' ,ofeeda s dt t ei t swha wee
y ubs s t nd rna $
Cay ubs' fr nd ol o hes nvesor
)
t r
i f tunr gitr s curtes b unde t g s ofr le t t i t e s The de e nt '
n ac
e se ed e ii , ut
r he uie
ea sa e nvesm nt .
f nda s
s lspic a ma kei m aera sf t s unr git e s curteswer l e wih f le and
ae thes nd r tng t il or he e e ser d e ii
e ac d t a s
mil di sae e s pur tng,f exa e t g r nt e i e ae r t ns on i sme
sea ng t tm nt, pori or mpl , o ua a e mm di t eur
nve t nt
a pr de i t s wih i t nt e t a asr nom i lr es of a ec ai De e nt
nd ovi nvesor t nsa quiy nd to
ca at
ppr i ton. f nda s
p o s d t tr idviua iv so s p rh s o u isi c n o nu p oe t nain- d
r mie o u n n i d l n e t r' u c a e f nt n o d miim r jcs to wie
TheCour as ga t pa test o i ofr - ni t r or i t sc eand hol ng an e de ir
t lo ve he ri he pton eope ng he ec d n hi as
di
vi nta y
he i on t sis a whiealoft deenda sa ee t s h ahe rng,Pl ntf SEC di no a s t Cour
arng hi sue, nd l l he f nt gr d o uc
ai
ai if
d t dvie he
t
whehert y t woul be a
t he oo
d
mena e t s h a heai Ac or ngl t Cour detr ne t tno s h hea i
bl o uc
rng, c di y, he
t e mi d ha
uc
rng
wo l beh l a d ta te rc r wo l rman co e S e Ore Ca c lig Tra a Pera ( /12 .
ud
ed, n h t h e od ud e i lsd. e d r n el
n il nd rtil DE / 3 )
Not t tndi t Cou ts i c i a or agumen t t a e de ir heai woul be hepf l t is
wihsa ng he
r' ndiaton t al r
t ha n vi nta y rng
d
l u o t
dee mi ton oft s is t Cour tndst t e pa t oft r cor i had i c t wer k r psvague'do
tr na i
hi s ue, he
t i hat hos rs he e d t
ndiaed e d ha
pe
'
notcr t acontits t ta evi nta yhea i woul ber r
eae
lc uch ha n de ir
rng
d equied.
Th Co r' Or rS ti OrlAru n o Crs- to sfrSu r J d me ( #1 1 ie tfe
e uts de et
ng a g me t n o sMoin o mmay u g nt DE 7 ) d niid
t is sonwhi t Cour woul hea or lagume ,t s ond is bei whet rt acst tfr t bass
wo s ue
ch he
t
d r a r
nt he ec
sue ng
he he t ha o m he i
o t sa t n iv le te s l o iv sme tc tat,h n e sc rte wihn tej rs ito o te S o
f hi ci n ov d h ae f n et n onrcs e c , e ui s ti h uidcin f h EC, r
o
i
whetert a si ve smpl r e tt ta a i .Howe r t Cour onl r che t saut oflmiatons
h he ct nvol d i e eal sae r ns ctons
ve , he
t y ea d he tt e i t i
is ea te h ai .Bae u o teCo r' c n lso ta i lc ssb etmatrj rs cin o e te S S
su t h erng s d p n h u ts o cu in h t t a k uj c- te u idito v r h EC'
cl msag ns al tveoft defnda si t sc eby ope ain oft fve- rsa ue oflmia i co ai d a
ai
ai t li
he e nt n hi as
r to
he i yea tt t
i ttons nt ne t
28U.. j2 62 teCo r d e n t a eo c so t ra h a teeoed e n ta d es tesc ndis eo a y
SC. 4 ,h u t o s o h v ca in o e c , nd h rfr o s o d rs,h eo su r n
oh ris erie i tepat s ma ya dv lmio sco smoin fr u r j d me t
te su asd n h ri ' n n ou n u rs- to s o s mmay u g n .
e
2
i o t s c of g e tpr i a weat t ough t i expe ts i r e tt deveopm e .
nt he our e
r a oft nd
lh hr
her
rie n eal sa e
l
nt
Unde val d a de ayi a rmen compl s woul be ta f med by def nda s e f rs
r ue nd c ng pa t t
exe
d
r nsor
e nt ' f o t
i otve sa l yr or desi tons gua a e i uni owne sarve ofr nt i
nt s -t r uxur es t tna i , r nt e ng t
r i r e al ncome f ri o
a nt
t f ur
he ut e.
Thes pr s wer no ke .l t ad,a i Ponz s he e f s on,a r t nspai t
e omies e t pt nse
nd n
i c m a hi ny e ur
d o
i esor c m e fom t f
nv t s a r he undsofl e i sor .Any wid a e a i wasa tfca l c us d by
atr nve t s
l ppr citon
rii ily a e
s l- alng a undic os d i i r s l .De enda s e t l a
e fde i nd
s l e nsde aes f nt ven ualy bandone t de l e
d he veopm nt
p oe t,a d a s o e wih mi in i mia p o rae iv so fnd ,la ig t e iv so s
rj cs n b c nd d t l o s n sp r p itd n e t r u s e vn h n e t r
l
wih not ng.So t sor goe .
t hi
he t y s
The SEC i si t t c e f a l s s ve ye r .The de e nt we e eac
nve tgaed he as or t ea t e n a s
f nda s r
h
s
ummone f e e i s n sa e nt . For e empl s of def ndan s ga s n
d or xt nsve wor tt me s
m r
oyee
e
t ve wor
sa e t .Ba ng a fna a r co ds we e exha tvel a l d.So t oft i vi
tt men s nki nd i ncil e r
r
usi y nayze
m
he ndi dual
i esor pr de sa e nt a ot i or ton t t SEC,whie ot r s d t def nt
nv t s ovi d t t me s nd her nf ma i o he
l he s ue he enda s
t m s ve .Bu r t r t n e pe tousy,or e n pr
he el s t a he ha x dii l
ve ompty,brngi an e or m e t aci
l i ng
nf ce n ton
a i tt a lge faudse sa ped e sofunr se e s c ii , he SEC waie
gans he le d r t r nd dlr
egitr d e urtes t
t d.
Ca Cl wa i t r a e t t de l
y ubs s n he e l sa e ve opme busne s4 Def nda Fr d Da s Clr
nt i s .
e nt e
vi a k
(t a k' wa Ca Cl 'Pr i n a CEO.Dee ntCrsa R.Colma Clr (1 eman'
t r ' s y ubs esde t nd
Cl )
fnda itl
e n ak û
Co1
'
)
wa a ma ng membera r gitr d ag tof va i Ca Cl e iis as wel a a s l s
s
nagi
nd e se e en
rous y ubs ntte
l s ae
ag nt Dee ntBar J Grha Cs a m')wa t Die t ofSaes Deenda Riky Lynn
e . fnda ry . a m Gr ha ' s he rcor
l . f nt c
St ($ oke ',whie notdiecl empl
okes i
St s'
) l
r ty
oyed by Cay Cl ,wa a sa s e a nt And
ubs s tr als ge .
Deenda t Da d W .Sc r (i hwa z' was Ca Cl ' CFO a Vie Pr i nt of
f . vi
n
hwaz i
sc r '
)
y ubs
nd c esde
Oper i
atons,
4
Ther tton oft f c si t sOr rast y perai t t s heme ale by t SEC i dr lr el
eciai
he a t n hi de
he
t n o he c
lged he
s awn a g y
fo teS SSae n o Un ip tdFat ( # 0 1, x e twh r te c nlc wi o aeu s p o tdb
rm h EC' ttme t f dsue cs DE 9 -) e cp ee h y o tit t r r n u p re y
h
r or evi nc r eva t t a iabiiy oft satt oflmiai .Bec s t Cou tco ude t ti l ks
ec d de e el nt o he pplc lt
he t ue i ttons
au c he r ncl s ha t ac
s be tmatr u idcinov rti c s,h Co r d e n ta destemei o teSEC' c ne to ta tea t
uj c- te j rs ito e hs ae te u t o s o d rs h rt f h
s
S o tnin h t h cs
c ai d ofi t sc ec tt e t oferngors e ofs c ii .Forpur esoft sOr r t cont in i
ompl ne
n hi as onsiutd he f i
al
e urtes
pos
hi de ,hat ento s
asume t betue.
s do r
Begnni i J yof2004 a untls
i ng n ul
- nd i ome poi prort J ua y 30,2008 ats ve e n
nt i o an r
e nt e
pr pe te fom Ke La go, Fl i t La Ve s N e da, Ca Clbs ofe e a s d
o ri s r
y r
orda o s ga , va
y u
f r d nd ol
c
ondomi um unist prvae i sor .Defnda sma kee Ca Cl a a i t e .Ca
ni
t o i t nve t s
e nt r td y ubs s n nvesm nt y
Clb wo l puc a ea dr n v t a e a da n o e c n o nu p o e t u ig iv so s
u s ud r h s n e o ae g d n ba d n d o d miim rj cs sn n e tr'
f
undsfom t pur ha e ofi vi lunis a t i t swoul r ap t r
r he c s
ndi dua t , nd he nvesor
d e he ewar . l t r
ds nveso s
we e ata t d t Cay Cl notonl by t pr s ofwid ap e i ton,bu a s b Cfhe Ca
r tr c e o
ubs
y he omie
l pr c a i
t lo y d '
y
Clb Co c p ' ap c a e o c mmi n sa d s ni e whc icu e ()ag a a teo a
u s n e t; a k g f o t t n e c s ih n l d d 1 u r ne f n
'
me
i dit rt n o ivesme of 1 oft purha e prc rt ned a cl i ()e ur
mme ae eur n n t nt 5%
he c s ie eur t osng, 2 ns ed
r nt li ome fom Ca Cl ma ge e oft r nt oft unis Cay Cl wa t pe f c
e a nc
r
y ubs na m nt he e al he t .
ubs s he r e t
pas i i t e opporuniy.l sor had onl t stba k a a cumult weat fom Ca
sve nvesm nt
t t nve t s
y o i c nd c
ae
lh r
y
Cl bs e f t
u ' fors.
Fis, Ca Cl ofe ed i t s t opporuniy t pur has condomi um unis a
rt y ubs f r nvesor he
t t o
c e
ni
t t
und vaue prce .Ca Cl cli e t be i t poston t pur ha e c
er l d i s y ubs am d o
n he ii o c s ondomi um buidi
ni
l ngs
a bel m a ke prc ,a c d t r f e lti vi lunis g a bel ma ke vaue.Thi
t ow' r t ies nd oul he e or e ndi dua t o t ow r t l
s
c e t d i nsante t ' I r a iy,Ca Cl uniswe e pur has d by d e nt o an i i r
r a e t t quiy. n e lt
i
'
y ubs t r
c e
ef nda s n
nsde
ba i,a ttcaly i l tng t uni val ,a t n s d t i t r f much m or t n t y
ss rii i l ntai he t ue nd he ol o nveso s or
e ha he
we e acua l wo t Tha t pror s l s ha be n t i i r was not dicos t t
r t ly rh. t he i a e d e o nsde s
s l ed o he
uns pe tng i sor Any lnsa e t 'wa ba e on t sarii i l i l t val
us c i nve t s.
t tnt quiy' s s d hi tfcaly nta ed ue.
i
S c n wa t eSe s b c 'a re n , ih whl n mial S p in l' samao
e o d, s h s a e a k' g e me t whc i o n l ç to as wa
l
e
yo
'
jr
s lng poi a wasuli a ey e er d i t by bewe 96 and 99 pe ce ofi sor .Thi
eli
nt nd
tm t l nt e n o
t en
r nt nve t s
s
wa t ke t Def nt 's he e. Unde t l a e ck pr r m ,a i sor woul ahe
s he y o
enda s c m
r he e s ba
og a
n nve t
d, r
e u i t pur has a ee e ,l as t u t b k t Ca Cl f a pe i of one t t
xec tng he c e gr m nt e e he ni ac o y ubs or
r od
o wo
ye s f Ca Cl e l i us ,pur t dl t c pl t r nova i nec s r t t a f m
ar or y ubs xc us ve e
por e y o om e e e
tons es a y o r ns or
t pr ry i o a l y r or.l exc ng f t sl s ba k,i sor woul r c ve 1 of
he ope t nt uxur es t n ha e or hi ea e c nve t s
d e ei 5%
4
t i pur ha e prc a or s ty a r cl i on t pur ha e.Thi ataci f t r w a
her c s ie t
horl he osng
he c s
s tr tve ea u e s
a riedasa way f i t st pa t i c ryi c t f t t r oft l as
dve ts
or nvesor o y he r a r ng oss or he e m
he e e.
Thid,Ca Cl woul us i t s f
r
y ubs
d e nvesor ' unds a de e nt 'r lesae de opme
nd f nda s ea t t vel
nt
e rie t c e t a ne wo k of l y r s t wih a w i a r y of l y a e te .W he
xpe ts o r a e
t r
uxur e ors t
de ra
uxur m nii s
n
complt d,t m ode tc
e e he
s ondomi um u t org na l pur has by t i t s woul r lz
ni
nis i i ly c ed
he nvesor
d eai e
sgnii n c pia a eca i a par oft sne ne wor ofr ors
i fca t a tl ppr iton s t hi w t k es t .
Fourh,al wih r nova i t agi c
t ong t e
tng he ng ondom i um buidi t m s l ,i sor
ni
l ngs he eves nve t s
who a e d t t las c woul r ceve t be
gr e o he e eba k
d e i he neftofCa Cl 'r nova i t i t s
y ubs e
tng he nvesor
u t wih up t $70, worh of ne f nihi a fxt e ,f t r i r a i t unis
nis t
o
000
t
w ur s ngs nd i ur s urhe nc e sng he t '
vaue.
l
Theffh bene i t i sor c me i t f m ofa me be s p i Ca Cl Re o t t t
it
ft o nve t s a n he or
m r hi n y ubs s rs ha
woul gi i t s t m s ves a ce st t l . a e tes a alt r o t.M e r hi
d ve nvesor he el
c s o he uxul m nii t 1 he es rs
y
mbe s p
wa r quie wih t pur ha e ofa uni,and r nge i prc fom $5, t $35, And t
s e r d t he c s
t
a d n ie r
000 o
000.
he
m e r hi is l wasa i t e o
mbe s p te f
n nvesm nt pporuniy;i a i sorwa e t s lhi uni he woul
t t f n nve t
nt d o el s t
d
r c i ba a c osngt gr a e ofet t f la oun orgi ly pa d f i, 80% ofwha
e e ve ck t l i he e t r iher he ul m t i nal i or t or
t
t new i t rpai f i.
he
nveso d or t
Si h,a a he ke f t e oft Conce was a r alpr r m wher by,a tr t
xt nd not r y eaur
he
pt
ent og a
e
fe he
l s c pe i ende Ca Cl woul e usve y m a e t unis a s e o t nant t
ea eba k rod
d, y ubs
d xcl i l
nag he t nd e k ut e s o
r nt t m .Ca Cl woul diti e t r nt r venue t t i t r a a 35/ % s i.
e he
y ubs
d srbut he e al e
o he nveso s t
65 plt
I sor we e p o ie by def nda st tr nt lr ve woul i e e dr tc l a rt
nve t s r r m s d
e nt ha e a e nue
d ncr as ama ialy he he
pr peri we e f l de ope i o l xur r ors
o tes r uly vel d nt u y es t.
Fi l t Conce c
naly, he
pt ame wih a buiti a pr
t
l-n nd oven e t sr t whe ebys usng
xi taegy
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Th tv - e rtmel tc nan da 2 U. C. 2 6 i j s s c asau e
e s ey a i i o ti e t 8 S. j 4 2 s u t u h ttt .
mi
Til 28U. C.j2 2 prvi i pe tne pat
te
S. 46 o des n ri nt r:
Exce t a ot r s pr ded b Ac ofCongr s a a ton,s torpr e ng
p s he wie ovi
y t
es , n c i ui
oc tdi
f r t e or me of a cvi fne, pe ly, o f reiur , pec a y or
o he nf ce nt
ny i l i
nat r o f t e
uni r
ot r s s lnotbe e erane unls comm e ed wihi fve ve r fom t
he wie, hal
nt ti d e s
nc
tn i
a s r he
daewhe t cli frta r e
t
n he am is cc u d.
201
(mphasss id) The Suprme Cou ti Gabel v.SEC,1 S.Ct l 1 1 -21( 3)
e
i upple .
e
r n
li
33
. 2 6, 220
r ce ty li t r s a que ton ofwha t saut y t tl n t cl m fr tac r ' ns.
e n l ad o e t ny s i
t he t t or ex i
whe he ai is c ued'mea
Ga el,1 3S. . t1 2 Ci cam . . c r e a dt efv -e rcoc b gn t tc wh n
b li 3 Ct a 2 0 a li . a cu s n h iey a l k e is o ik
e
Ihe c
t onduc gi ng rs t t cai oc url'.The Cou twe on t expl n t tt s i t
t vi ie o he l m c s'
)
r nt o ai ha hi ç
mos
naur lr a ng oft sa ut 'i sç et a fxe dae whe e
t a e di
he tt e,'d. i s i d t
s
n xpos e t t s cii d Gove m e
ur o he pe fe
nz nt
e or eme efor e , a nci çhe basc polces of a 1 lmia i pr sons r pos
nf c nt f t nds dva ng t
i
ii
l i ttons ovii : e e,
elmi to of sae cli s a c ti y a
i nai n
t l am , nd era nt bout a pl ntf opporuniy f r c r a a
ai ifs
t t or e ove y nd
t '
ela
28 S. 49, 5
del nts potnta la l i .'1 a 1 1 ( tng Rot l v.Wood,5 U. 5 55
knda '
e il ibii es' d. t 22 quoi
( 0:.Ac or ngl t lt tpoi a whih acam ma a cr i t daeon whih t l t
200
c di y, he aes nt t c li
y c ue s he t
c he as
a tgi ng rs t t pl i ips d omplt a pr s ntc us of a ton' oc ur .See Walace v
c vi ie o he antf f
c
ee nd e e a e
ci ' c s
l
.
Kao,5 9 U. 3 4,3 8 ( 0 7 .l Ga el,wh r t e SEC' cam wa ba e o fa d,te
t 4 S. 8 8 2 0 ) n b li ee h
S li
s s d n ru h
S S cam a c u d ç e t d fn a tsalg dy fa d ln c n u to c re l' Gab li
EC' li c r e s n he ee d n ' le e l ru ue t o d c c u gd .
wh
' el,
1 S.Ct a 1
33
. t 220.He e bec us t SEC' cai i bas u t ofe i a s l ofwha i
r , a e he
S l m s ed pon he f rng nd ae
tt
al es t be s urtes t lt s poi a whih t SEC' cai c d ac r e i t da e on
leg o
ec ii , he a e t nt t c he
S l m oul c u s he t
whih a de e ntls s d orofe e t a lge s c iy.
c
f nda a t ol
f r d he le d e urt
Bec us t da e o ac r a i a fxe a knowa e da e an t Govem me ca
a e he t f c u l s i d nd
bl t , d he
nt nnot
r nt
t
tke a
a
dvan a of t fa dic r r l t dea c am a c al he Gove nme m us
t ge
he r ud s ove y ue o ly l i c nz ,t
c
omm e e t c us ofa ton wihi fve ye r oft l tac gi ng rs t t c am ors h a
nc he a e
ci
tni
a s he as t vi ie o he l i
uc
cli ks l notbe entrane ' Thi saut y l ngua i a c es i
am iha l
e ti d.' s t t or a
ge s ongr sonalr m ov ofacour'
e al
ts
po rt e tran isa j dc tr a t o i a j rs ito - a e n tb o g twi n fv
we o n eti t du iao y u h rt nd u idcin - s s o r u h t ie
y
hi
yea sofa c ua . ndee t sl uagen ount t a S g voc sa ut r c
r
c r l l d, hi ang
m
s o n % ui al tt o y omm a t f de a
une
nd o e r l
11
co t not t enet n' a u i y cai Se Swai v Pr s ly, 430 U. 372 ( 977)
urs
o trai ' n ntmel l m. e
n . e se
S.
1
(nep eiga ie tc lsau o yp o cito f u i D. Co ej2 - 1 ( )( 9 3 )
itr rtn n d nia ttt r r srpin o nd n C. d 3 1 0 g 1 7 ).
I a c s s h ast s whe e t ofe i a s l ofal ge s urteswa done by ea h
n a e uc
hi, r he f rng nd ae
le d ec ii
s
c
(ft de e nt muli etm e a o rt c s ofs r lyea s dic ni fom t r cor
) he f nda s tpl i s nd ve he our e eve a
r , s er ng r he e d
t a ol t ls dae on whih e c de e ntc mitd a a tofofe i ors lng i r lton
he bs u e a t t
c a h f nda om te n c
f rng eli n ea i
t t da e on whih t SEC c
o he t
c he
omm e ed t s a ton i dee m i tve ofwhehe t Cour ha
nc hi c i s tr na i
t r he
t s
j rs it n t e tran t ecam a a an te c d fn a t Lo k da a oh rwa ,wheet
u idci o ne ti h li s g i s a h ee d n. o e t n te y
o
r he
ls a t of e ch de e n gvi rs t t SEC' cli a i t s h def nda was no
at c
a
f nda t i ng ie o he
S am ga ns uc
e nt
t
c
ommit wihi fve ye r prort t SEC' flng ofis c pli t a wi
ted t n i
a s i o he
S ii
t om a n
ndow of tm e t
i he
Co r a d p rish verfre t a t eke z n ' i j2 6 a p ist te S Scams i
u t n a t a ee rd o s h t d o e' f 4 2 p le o h EC' li ,t
e
r
ope a es t di s t Cour of t powe t e e t n t t cai .Be aus t SEC fl is
r t o ve t he
t he
r o nt rai ha l m
c e he
ied t
c
ompl nton J nua y 30,201 i t l s a tof a de e
ai
a r
3, f he a t c
ny f ndantdi no oc ur wihi t ç e
d t c
t n he d d
r
zone', o b t e J n ay 3 , 0 8 a dJ n r 3 , 01 , h Co r wo l lc s b e tmatr
' r ewe n a u r 0 2 0 n a uay 0 2 3 t e u t ud a k u jc- t
e
jrs ito t a j d c t tecam a a an tta d fn a t
u id ci n o du iae h li s g is h t ee d n .
c The fveye r sa ut o Imia ins c nti e a 28 U. C.j 24 2 a is t aI
.
i - a t t e f i t to o a n d t
S.
6 ppl o I
e
f m sofrei fs htby t SEC
or
le oug
he
Til 28U. C.j2462 i e afveye saut oflmiai on c ran a tons s t,
te
S.
mpos s i - ar tt e i ttons e ti ci , uis
orpr e ngs br ugh by t Unie Stt g r nt i l ng SEC e o ce e a tons
oce di
o t
he
t d a es ove nme , ncudi
nf r m nt c i .
Thesaut pr desi f l
t t e ovi n ul:
Exc pta ot r s pr de by Ac ofCongr s a a ton,s tor pr ee ng
e s he wie ovi d
t
es , n c i ui
oc di
f t e or ment of any cvi fne, pe ly, or f r et e pec a y o
or he nf ce
il i
na t
o f iur , uni r r
o he wie,s l no be en e t i d unl sc me d wihi fve yea s fom t
t r s hal t
t rane
es om nce t n i
r r he
dae when t cai frta r d i,wihi t s m e pe i t ofe
t
he l m s cc ut f t n he a
rod, he f nderort
he
pr ry i f
ope t s ound wihi t Unie Stt s i or r t t pr pe s r c m a be
t n he
td a e n de ha o r e vie y
m ade t eon.
her
The quesi t tc r st Cour i whehe t ssa ut whi h explcty a i st
ton ha onfont he
ts
t r hi t t e
c
iil pple o
a tonsSf t e or e
c i çor he nf c mentofa ci ltne,penat o f f t e pe ar o ot r s '
ny vi i
ly, r oreiur , cuni y r he wie'
a s a i s t ot r f m s of r le t SEC m i s k by a gi n a ton.Spe fcal he e
lo pple o he or
ei f he
ght ee
ve c i
cii ly r ,
wh r t eSEC se d caaoy rle,nun to a dd s o g me t i t o ef nnso rle f l
ee h
e ks e lrtr eif ij cin, n ig r e n ,f h s o
f eif al
ousdeofj2462' r c a i t SEC' poston,heSEC ca brngs h cai wihou rgad
ti
s ea h, s s he
S ii t
n i uc l ms t t e r
t how f ri t pa tt acsgi ng rs t t c am oc ured.I ,
o
a n he s he t vi ie o he l i c r f howe r t e f msofr i
ve , hes or
elef
aewihi j2462' r a h,heSEC' a tonma bebard i nottmel br
k tn
r
s ec t
S ci
y
re f i y ought
.
As dic s d above,t Supr me Cour,i a t ni
s us e
he
e
t n ma mous opi on is d l tt nn,ha
ni s ue as e
d
oc asont i e e t sopeoft phr et nt cam frta c ue 'c anedi j2462,
c i o ntprt he c
he as s
whe he li is c r d' onti n
f d i d t tt mos na ur lmea ng oft pk as i t t a cl m a r es when t a t
md ecde ha he
t t a
ni
he
e s ha
ai cc u
he c
gvn rs t t ecam a ta l o c r.Ga el 1 3 S. . t1 2 - (u te hodngt tt e
iig ie o h li cu ly c u s b li 3 Ct a 2 0 21 f rh r li ha h
SEC, n a tng i ise or eme c ct ca
whe c i n t nf c nt apa iy, nnottkeadva ag oft fa dic y l l
a
nt e he r ud s over ' e
u
t d ly te d t o a cu l.Whiet e Su r me Co r t ee e p e sy d cie t r a h t e
o ea h ae f c r a)
l h pe
u t h r x r s l e ln d o e c h
q eto wh t e ij ci er l fa d ds o g me taeas c v rdby j2 6 a t q eto
u sin eh r nun tv ei n ig r e n r lo o e e
e
4 2, s he u sin
wa no p opery bef e i,i a 1 n. ,t s Cour bei ve t tt l he d polces a
s t r l
or t d. t 220 1 hi
t le s ha he ong- l
ii nd
pr c iest tunde i t Supr me Cour' una mousopi on i Gabe l,a wel a t t xtof
a tc ha
p n he
e
ts ni
ni n
li s l s he e
t saut isl,r uiet c l i t j2 doesr c alf
he tt e tef eq r he oncuson hat 462
ea h l onnsofr ifs
ele oughtby t
he
SEC i t sc e.
n hi as
l deci ng t al w t SEC t tke a nt geoft faud dic r r e i brngi a
n lni o lo he
o a dva a
he r
s ove y ul n i ng n
e f re n a to ( so p s dt a a to wh r t eGo e n is l i avci o afa d ,
n o c me t cin a p o e o n cin ee h v mme t tef s itm f r u )
te S p e Co r e p e s d g e tc n e n f rle vgn )d fn a t e p s d t g v r me t
h u rme u t x r se ra o c r o d a ig ee d n s x o e o o e n n
l
e or eme a ton no onl f fve y r a trt rm ide ds,butf an a tonalunc t n
nf c nt c i
t y or i ea s fe hei s e
or
ddii
erai
p ro it t ef tr . f a 1 2 .Th Co r r afnne t ti wo d rj c ar l t two l
ei d no h uu e' #. t 2 3 e u t e fi d ha t ul ee t ue ha ud
'
'e tnd lte lmiai n peid t ma y d c d s b c u e s c ar l wa t e o d a y l t
f xe l h i tto s ro o n e a e ' e a s u h ue s b y n n i
s
mi
ta Co g e sc u dh v c ne ltd'a d i u dh v t wa td te b sco j ci eo rpo e
h t n rs o l a e o tmpae n wo l a e h re h a i be tv f e s
undel ng t veynoton ofalmiai pei ''1 ( tng Rot l v Wood,5 U. 549,
ryi he r i
i ttons rod.' d. quoi
ela .
28 S.
554 (
2000:.The Cour i
t nvoke ChifJ tc M as l' i riulry f c ullnguage ...
d e usie rhals f tc al or ef a
pa
empha ii t i
sz ng he mpora oftme lm ison pe t aci 't t'twoul be utery r pugna
tnce i i t
naly tons' ha d
i
d
tl e
nt
13
t t g i ofour lws i a tons f pe te c d be br
o he enus
a f ci
or nali s oul
oughtat a ditnce oftm e,
ny sa
i '
'
Ga el,1 3 S.Ct a 1 2 ( u tn Ad ms v Wo d ,2 Cr n h 3 6,3 2 ( 8 5 ( rh ls
b li 3
. t 2 3 q oi g a . o s
a c 3 4 1 0 ) Ma s al
( J).
2..)
TheCou tr a fr d t tsa uts oflm iai n,whih f ovi s urt a sa lt t
r e fime ha t t e
i t to
c l
pr de ec iy nd t biiy o
hu n afis' ae i ed d t t t welae ofs ey. 1 a 1 (ntr lcttonsa
ma far,' r nde t al o he fr
vi
ocit ' d. t 221 i e na iai nd
'
quoai mar o te .Andt Cour undes ordt i tnc ofdheba i polci ofal
tton ks mitd)
he
t rc e he mpora e t
t sc i es l
lmia i pr sons r pos ei naton of sae c am s a ce t nt a
i ttons ovii : e e, lmi i
t l l i , nd rai y bout a pli ifs
a ntf
o
pporuniy f r ove y a a de e nts pot nta la lte ' 1 Uli ael t Cour
t t or ec r nd
f nda '
e il ibiii s. d. tm t y, he
'
t
una m ousy r a fr e t prncpl t tSe n wr
ni
l e fim d he i i e ha kve ongdoe sa e e il d t a s
r r ntte o s umet tt rsns
ha hei i
ma b f ro tn. 1 ( u tn Wi o v Ga ca 4 1U. 2 , 1(98 ).
y e o g te ' d.q oi g l n . r i, 7 S. 61 27 1 5 )
'
s
Th S Spo iinwihrg r t j2 2 t a i d e no a p ywh r , sh r ,h SEC
e EC' sto t e ad o 46 - h t t o s t p l ee a ee t e
s e sdig r e n , nu cin, n d ca ao yr le- wo l ma t eGo e n n ' r a h t
e k s o g me t ij n to a d e lrt r eif ud ke h v r me ts e c o
en or s h cli sa n t isunlmie a lt t p os ut mur r r a r pit .Fors
f ce uc am ki o t i t d biiy o r ec e
de e s nd a ss
uppo t
r
oft sposton,t SEC poi st Unie St e v Bank ,1 5 F. 91 91 (11h Ci.1 )
hi ii he
nt o td ats . s 1 3d 6, 9 t r 997 ,
whe en t Elven h Cic thed t tç bs nta c e re e son ofCongr s t t co r r a
r i he e t r ui l ha ' e
a
l a xpr s i
e s o he nta ysaut oflm iai doesnota y t ca ms b oug by t f der lgove nme i iss r gn
t t e i t ton
ppl o li r ht he e a
r nt n t ove ei
ca ct 'TheCo ti Bank po ntngt t dititcour dec sonsf om out i t Elve t
pa iy.
'
ur n
a, i i o wo src
t ii r
sde he e n h
Cic i, o cud dt a tei li ln u g o j2 2d e n t p yt e utb erme is' a d
rut c n l e h t h ç an a g a e f 46 o s o a pl o q ia l e de ,6 n
p
'
t tt r f e t kc e r e es i of Cong es ' r quie be or a ia i of t saut of
ha he e or he dl a xpr son
r s' e r d f e pplc ton
he t t e
lmiai n wa n tp e e ti j2 6 1 Th Elv nh Cic i i Ba k , we e,a wela t
i tto s s o r sn n 4 2.d. e e e t rut n n s ho v r s l s he
onl publs d dititco tde iin i rled on rgadi j 2 s co rge ofeq t e
y
ihe src ur cso t ei
e r ng 462' vea
uiabl
rme is d atwi adifrn knd o e u tb er me y s e i t e j i a dfe e tkn o
e de, el t
h fee t i f q ia l e d e kng o n on if rn id f
ha m t a is i t s c e.l bot Ban s a Hobb t Unied St t s i is s r i
r han t s ue n hi ms n h
k nd
s, he
t
a e n t ove egn
c p ct s ug tt e f ret Cla W ae Ac,a di e c c s s u h t e j i t eds h re
a a iy o h o n o c he e n tr t n n a h a e o g t o n on h ic a g
6
S ei.(in t a u p bih dod ri No t Ca oia Wi l Fe eainv Wo d uy CaeNo. 7
e d ct g o n n u lse re n rh r ln l fe d r to . o b r, s
i
d
85 4- V- ( D. C.1 9, n q oig Untdsae v Ho b ,7 6F. p 1 0 ,1 1 ( D. .l 9 ).
s CI 5 E. N. 98 )a d u tn i tts . b s 3 su p, 4 6 4 0 E. Va 9 0 )
e
14
offl i oU . wa e s. e i a 91 Hobbs, F. pp. t1
il nt S. t r Se d. t 8)
736 Su a 407. har co pl ne ofwa
The m m ai d
s
c niu n i n tr i boh c s s a d e j iig te c niuig h r wa t p r s o te
o tn i g n au e n t a e , n n onn h o tn n a m s he u po e f h
enf c m e a ton; i wa not t punih de e nt f di c r ng t fl. Bec us t
or e nt c i
t s
o
s
f nda s or s ha gi he il
a e he
ij n to s u h wa n ti n tr ak e ly'whc i e p e syc vee b j2 6 teewa
nu cin o g t s o n au e ' nat s ih s x r sl o r d y 4 2,h r s
p
'
no S lare esi ofCo e s'ha j246 s da yt ba t govenme tse oce n
d e xpr son
c
ngr s't t
2 houl ppl o r he
r n ' nf r me t
ac in i t tc s
to n ha a e.
l e s nc t SEC' a gum e ti t sc e i t tbe a e t wor t c a a or r le s
n s e e,he
S r
n n hi as s ha c us he ds s l r t y e if'
de
'
Anu cin'a di ig r e n'd n ta e ri j2 62 n sau eofI tto a pis Th
i j n to , n ç s o g me t' o o pp a n 4 , o ttt i ains p le . e
i
'
d
mi
p i i e underyi t Supr m e Cour' de son i Gabel, howe , c
rncpl s
l ng he
e
ts cii n
li
ver ouns agans
el i t
a c ptng t SEC' ar
c e i he
S gument Pe lis ç c a y orot r s ' a e a t he r ofa 1f m s
. nate , % unir
pe
he wie, r t he a t 1 or
'
ofr le s htby t SEC i t sc e. r tofa l by isve y t ms t SEC' c
e if oug
he
n hi as Fis
l, t r er , he
S ompl i s ks
ant ee
t ha t Cour,by way ofa de l ai n t tt de e nt ha vi a e t f der ls urtes
o ve he
t
car to ha he f nda s ve ol t d he e a ec ii
lws ûlbel d e nt wrng s' See Gabel, 1 S. Ct a 1
a , sa
efnda s o doer.
'
li 33
. t 223 ( susi wha
dic sng
t
c tt e a pe ly a t n i
onsiut s
nat nd he nvoki t powe f wor of Chi J tc M a s l t t 't
ng he
rul ds
ef usie rha l ha '
i
woul beute l r pug ntt t ge usofou l i a tonsf rpe li c d be br
d
t ry e na o he ni
r aws f c i
o nates oul
oughta
t
a y dsa c o tme).Si lry te ij n tv rle s u h b te S i t s c s f rv r
n itn e f i ' mi l, h n u ci e eif o g t y h EC n hi a e o e e
a
ba ng d e
ni
ef ndan s fom f ur vi ai of t f de al s urtes l ws ca be r ga de as
t r
ut e oltons
he e r ec ii a
n
e r d
nohi s tofa pe ly iitnde t punih,'es cily whe e a hee,no e de (r
t ng hor
nat tne d o
s ' pe al
r, s r
vi nce o
algai )ofa c iui ham orwr
le tons ny ontn ng r
ongdoi hasbee prs ntd. naly,hedig geme
ng
n e e e Fi l t s or nt
ofa lilgote gans r ai e fo t al ge vi a i oft s urtesl ws ie ,r quii
l l- tn i e lz d r m he le d oltons he ec ii a
.. e rng
def nda s t r lnquih m one a pr t ca tul be r gar d as not ng ot r t n a
e nt o ei s
y nd opery- n r y
e de
hi
he ha
freiur ( hpe unir a ohe wie,whihr dy i e esl c rdbyj2 Tohol
of t e bot c ay nd t r s ) c eme s xpr sy ovee
462.
d
ot r s wo d be t ope t doort Go m men pli if 'i enuiy i c e i ne t ms
he wie ul
o n he
o ve
t a ntf s ng t n r atng w er
f t p ecs f m sofr i e es l c r byt sa ut i or rt a d isa i to
or he r ie or
elef xpr sy ove ed he t t e n de o voi t pplcai n.
15
d. Pl ntf be st bur n ofe t ihi j s ci
ai if ar he de
sabls ng uriditon
Th sc s h sp o r se t t e sz r j dg n sa e a d t eCo r h sh ad o a
i a e a r ge sd o h l
mmay u me t tg , n h u t a e r r l
a g me to a1te p ris co smoinsf rs mma yj d me t Bu t eb r e ofp o fo
ru n n 1 h a t ' r s - to o u r u g n . t h u d ns r o n
e
whih t Cour mus ba e is decson i t s ca e a e not t us l bur
c he
t t s t
ii n hi s r
he ua
dens a plc bl t
p ia e o
s mma yj d me t Ac o dngy i i n c sayt b ifyd sus t erlv n b r n o p o f
u r u g n . c r i l,t s e e s r o rel ic s h ee a t u de s f r o
i plcewhi h gove t Cour' de son.
n a
c
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nd rai y d t f r el ny lege e urtes n he ie
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1
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Se eg. Gr ha De ton Tr ns rptDE #9 1 at1 2
e . , a m posii
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ii
a ci
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.
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The SEC des i Schwa z' i ve ntwih ca Cl as s nni çfom J y 2004 untlatlas
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ul
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9 - t 6 7, n a a s n ov me t s p n n r m s ae h n g s
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2 0 u tl tb r2 0 '(d.t 4 )
0 5 niOco e 0 79 i a ! 5 .
19
commit d any o t ac swhih gi rs t t SEC' cai si t sc e a trJ nua y 30,
te
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S l m n hi as fe a r
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t eCo r i wi u jlidcino e t eSEC' camsa ans t s t d fn a t.
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'
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S li g i the e wo e e d n s
W ih r s c t de e ntCol ma whe pr s ed a or la gum e t pi nta a tof
t e pe t o f nda
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nt o npoi ny c
s li orofe i alege s urte a trJ r 30,2008 t SEC wasa eonl t poi t a
e lng
f rng l d ec iis fe anua y
he
bl y o nt o n
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ha
n e n' ong poston, nd n r e t ec d, ch he
am d
n ed
t g t e p o d ( ra la ts tsid t ebu d n te a s me t ybo eo s mmayj d me t
o eh r rve o t e s aife h r e h y su d he r n u r u g n)
t tColma sa t we e wihi t ir zone. Se Tr ns rptofOr lAr
ha
e n' c s r t n he sed
' e a ci
'
a gumenta 93
t -95,
The
SEC' a g
S r umentgoes as f l :Colm a wa a r t on Ocober 9,2008.DE #1 6.I
olows
e n s resed
t
25- n
Colm a sde ii s t tte t ts t overmana ng acompa c l d d it lCl r
e n' poston, he esis d ha he ook
gi
ny ale i sa ea
cr
Re a s' i lt 2007 a t t t s c
ntl' n a e
, nd ha hi ompa at o tme ha be par of t l pl
ny
ne i
d en
t
he oo- us
c po ai t tco prs d Ca Cl .See Col n De ii Tr ns rptDE #92- 4 a 93,
or r tons ha m ie
y ubs
ema
poston a c i
1 t
W he as at he de ii wheher ' it Cl r Re a s'wa sil i ope a i whe
n ked
r poston
t d sal ea
cr
nt l' s tl n
r ton
n
Col ma wa a r se i Oct rof2008,Colm a r s
e n s re t d n obe
e n e ponde t td it lClarRe al' ha
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cr
nt s' d
'
cos d S o bl sx ors ve m on hsbe or 'he a r t f a 1 Acc di y,t SEC woul
l e ' ba y i
pr
e n
t
f e' r res. #. t 06. or ngl he
d
ha t Cour fnd t tt s i pr t tCol man wa ca r ng on Ca Cl 'busne sdsx or
ve he
t
ha hi s oof ha
e
s ryi
y ubs
i s ti
s ve m onhs'pror t Oc o of 2008,or s m e i i M ar h or Aprloft tyea ,whih
e n
t ' i o t ber
o tme n
c
i
ha
r
c
wo l bewi i tei e z n . Se Trnsrp o OrlAru n a 9 Th Co r rj ce a
ud
t n h s d o e' e a cit f a g me t t 4. e u t ee td t
h
r
'
o a ag me t t e pr p sto ta ti l e o q e to n c u ld wih c ne tr a o t
rl r u n h o o iin h t h s i f u sinig o pe t o jcu e b u
n
Col ma sa r ta t c osng ofd it Cl a Re a s'c d a
e n' res nd he l i
f sal e r ntl ' oul mountt f oof' a hi
cr
oi
pr 'of nyt ng,
i a 95,a her c l
d. t
nd e oncudest ti doe no m e tt SEC' bur n ofpr by a p e
ha t s t e he
S de
oof
r ponde a e
r nc
oft e de et tColm a s d orofe edalege s c ii afe J nua y 30,2008.
he vi ne ha
e n ol
f r l d e urtes tr a r
Furher e,e n i t Cour wer i lne t a l t s va lne of q si ng t
t mor ve f he
t e nci d o low hi gue i
ue toni o
a ou t t pr r quie ofa a tby Colman wihi t k ed zone' t a tpr d i not
m nt o he oof e r d
n c
e
t n he s
r
,' he c ove s
oneofs li oroferng al ge s cu ii .Co e a t tfe a he de ii andt SEC has
elng
f i le d e rtes l m n esii d t r poston,
he
no diputd, ha ScrsalCl rRe as't c
t s e t t f it ea nt l, he ompa t ts t ove i lt 2007,wa nota
'
ny ha he ook r n a e
s
t
20
t a tme i t busnes ofs li oro f rng r a esae f s l butr t rwasi t busnes
h
' t i n he i s e lng
fe i e l t t or ae,
a he
n he i s
ofmana ng r nt lhous and ot rpr tesi t Fl i Keyswholy unconne t d t a of
gi e a
es
he operi n he orda
l
c e o ny
t Cay Cl
he
ubs pr ris. Se Colm a De ii Tr c i DE #92- 4 a 93-1
ope te
e
e n
poston ans rpt
1 t
06.
Ac r ngl be a e t SEC has nots
co di y, c us he
hown t t Colm a c
ha
e n omm it d a oft a t whi
te ny
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t Fe R. v. 1 h)3)
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f Dimis l ho dbewih prj c
. s s a s ul
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e u t s n f l h t r iaiy imis l o a k f u j c- t j rs it s
e
on
not a de e mi ton on t m eis a us ly o aes t r f e a a dim is wihout
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Ci P. 41b .Ho ve, t Co r' c n lso i t s c s t a i lc s s b e tma tr
v.
() we r he u ts o cu in n hi a e h t t a k u jc- te
j rs ito h sb e r a h d a amu h dfee tsa ei tel i ain t a t en nna d cso
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t
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Pl ntf f iur- a trne ry s ve y r ofi si ton,afe t c os of a1di c r a
ai ifs al e fe a l e n ea s nve tgai
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1 s ove y nd
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ton a tc her f l a e usi or l a gum e t a afe gi ng t Pl i if a
ul nd xha tve a r
n , nd tr vi he antf n
opporuniy t r - n t r co d a pr s ntne e de e on t is - t ca r isbur n of
t t o e ope he e r nd e e
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de
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sa ls ig h t h u t a u idcin v r litf li y p rto f tt o y
pr crpton a ns e e ti ng s c am s l i t vi w oft Cour t t i lg oft sa
os i i gai t nt rani uch l i . t s he e
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t ha , n iht he t ge
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n h s a e t ih t a tr n d h t t a k u j c- te j rs ito , litf li
s o l b ds se wi p eu ie Th v r pupo e o saue o lmiain s p r t i
h ud e imis d t rj dc . e e y r s f tt ts f i tto u po t hs
h
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e
e
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or t '
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li 33 Cta 221 quoi
lon . ci
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I I CO NCLUSI
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ON
Thi i a ca e i whih t SEC t Age whos prnci lm ison i i t ç ot t
ss
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ncy
e i pa s i t s o ' ec
pr
i sor a t m a ke sby i si tng po e i lvi ai oft f de a s curtes1 ws'4
nve t s nd he r t
nve tgai
t nta ol tons he e r l e ii a '1
f ld t me tiss rousdu y t tmel b i t senf c m e a i
aie o e t e i
t o i y rng hi or e nt cton.
Ac or ngl be us t ûve-ea saut oflmiai f
c di y, ca e he
y r tt e i ttons ound a 28 U. C.j 2462 i
t
S.
s
j idi i a a i t al fr ofrle s
urs ctonal nd pples o l oms eif oughtby t SEC i t sc s a t SEChe
n hi a e, nd he
1
3
Atl s on c thasr cog ze t f
ea t e our
e ni d he ounda i oft El nt Cic tssat nti Cr welt ti wa
ton he eve h r ui' t eme n ot l ha t s
errt ds s * t peu c 'ac mpan frlc o s be tmatrj rs ito wa rj ce b teS prme
ro o imis ç h rjdie' o lit o a k f u jc- te u idcin s eetd y h u e
wi
Co r i Se e 1 t1 n . . ch e Ma tnCop.5 1U.. 97(0 l. eSts a v Wedfbi ? Bd o nt
utn mtk n $I c v Lo k e d ri r , 3 S 4 2 0 )Se y k l . l f y fcou y
a
Co r, 6 F.d8 5 8 8 9( 0hCi. 0 4)
m' 3 5 3 5 , 5 -5 1 t r 2 0 .
s
S eGa el, 3 S, . t1 2 (iigS Eno c me tMa u l1(01 :.
e b li1 3 Cta 2 2 ct EC, fre n n a 2 2
n
24
a trf ldic y a opporuniy t de op t r c d- ha notm e isbur n ofesa ihi
fe ul s over nd
t t o vel he e or
s
t t de
t bls ng
t i Co r' j rs ito ,a d t eCo r h vn c rf l c n i ee t ee t er c r a d b ig
hs u ts u idcin n h u t a ig aeul o sd rd h ni e o d n en
y
r
ot r s f l a s i i he e ORDERED,ADJUDGED AND DECREED t tt sc e
he wie uly dvied, t s r by
ha hi as
i DI I
s SM SSED W I PREJUDI
TH
CE.Al pendi m o i a e he eby DENI a moota
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t Clr s l CLO SE t c e.
he e k hal
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DONE AND ORDERED i c
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ng de al usie
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Buidi a Unie St t Cou t e M i mi Fl i t s 1 t dayof a , 201
l ng nd t d aes rhous , a , orda,hi 2h
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