Securities and Exchange Commission

Filing 130

MOTION by Plaintiff Securities and Exchange Commission for judgment against Defendant W. Gary Griffiths (Attachments: # 1 Exhibit 1, Proposed Order of Judgment, # 2 Exhibit 2, Consent of W. Gary Griffiths)(Moye, Robert)

UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
REX C. STEFFES, et. al.,
Defendants.

)
)
)
)
)
)
)
)
)
)

Case No. 1:10-cv-06266
Judge Robert M. Dow, Jr.

PLAINTIFF’S AGREED MOTION
FOR THE ENTRY OF FINAL JUDGMENT
AGAINST DEFENDANT ROBERT J. STEFFES
By agreement of the parties, and pursuant to Rule 58(d) of the Federal Rules of Civil
Procedure, Plaintiff, the U.S. Securities and Exchange Commission (“the Commission”),
respectfully requests that this Court enter the proposed order of final judgment against Defendant
W. Gary Griffiths which is attached hereto as Exhibit 1.
1.

On September 30, 2010, the Commission filed this civil enforcement action

against Defendant W. Gary Griffiths and others, alleging that the defendants had engaged in
insider trading in the securities of Florida East Coast Industries, Inc. in violation of federal law.
(See Docket No. 1) That same day, the Commission also filed an agreed motion for the entry of
judgment against Defendant Robert J. Steffes. (Docket No. 6)
2.

The remaining defendants moved to dismiss the Commission’s complaint.

(Docket Nos. 29 and 36) The Court denied these motions in a written opinion on August 3,
2011. (Docket No. 79) On August 22, 2011, the Defendants filed answers denying that they had
engaged in the conduct alleged by the Commission. (Docket Nos. 84 and 85)

3.

On December 19, 2011, counsel for the Commission filed a Notice of Potential

Settlement with Defendant W. Gary Griffiths, advising the Court that a proposed settlement with
Mr. Griffiths would be submitted to the Commission for review and consideration. (Docket No.
101) The Commission now has approved the proposed settlement with Mr. Griffiths.
4.

Defendant W. Gary Griffiths has agreed to resolve the Commission’s claims in

this matter by the entry of a final judgment which: (a) permanently enjoins him from violating
Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. § 78j(b),
and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5; and (b) requires him to pay a civil penalty of
$120,000. (See Exhibit 2, Consent of W. Gary Griffiths at ¶ 2(a) – (b).)
5.

The Commission’s proposed judgment order against W. Gary Griffiths has been

reviewed and approved by Mr. Griffiths and his counsel. (See Exhibit 1)
6.

Accordingly, the Commission respectfully requests that this Court enter the

proposed order of Final Judgment as to Defendant W. Gary Griffiths.
7.

The Commission’s case against the other Defendants will continue.

Dated: March 23, 2012.
Respectfully submitted,
_/s/Robert M. Moye___________________
Robert M. Moye ([e-mail])
Steven C. Seeger ([e-mail])
Scott B. Tandy ([e-mail])
U.S. Securities and Exchange Commission
Chicago Regional Office
175 West Jackson Boulevard, Suite 900
Chicago, IL 60604-2615
[phone]
[phone] (fax)
Attorneys for Plaintiff, the U.S. Securities and
Exchange Commission

CERTIFICATE OF SERVICE
The undersigned hereby certifies that on March 23, 2012 a copy of the foregoing
Plaintiff’s Agreed Motion for the Entry of Judgment against Defendant W. Gary Griffiths
has been served upon all counsel of record via the Court’s ECF system:

___/s/Robert M. Moye________
Robert M. Moye