Securities and Exchange Commission v. Bronson et al

Filing 292

ORDER granting 291 Letter Motion for Discovery. The discovery requests in this letter are entirely reasonable. Mr. Bronson is to produce all the materials and information listed herein by 11/17/21. No extensions will be granted. Failure to prod uce these materials could 1esult in Mr. Bronson being found in contempt. The Court will conduct a hearing on 11/22, at 10:00. At a minimum, the witnesses listed herein must be prepared to testify. SO ORDERED. (Signed by Judge Kenneth M. Karas on 10/27/2021) (jca)

Case 7:12-cv-06421-KMK Document 292 Filed 10/27/21 Page 1 of 2
Case 7:12-cv-06421-KMK Document 291 Filed 10/27/21 Page 1 of 2
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
BROOKFIELD PLACE, 200 VESEY STREET, SUITE 400
NEW YORK, NY 10281-1022
NEWYOftK
R?::GIONAL. OP"l"ICE

MEMO ENDORS ~o

October 27, 2021

ByECF
Hon. Kenneth M. Karas
United States District Court
United States Courthouse
300 Quarropas Street, Chambers 533
White Plains, NewYork 10601-4150
Re:

US. Securities and Exchange Commission v. Bronson et al.,
12-CV-6421 (KMK)

Dear Judge Karas:
I write in regard to the Court's Order for the parties to appear on November 22 for
a hearing concerning Defendant Edward Bronson's ("Bronson") claim that he lacks the
financial capacity to comply with the Court's Order to pay make monthly $1.1 million
payments. DEs 272, 290.
Bronson's notice acknowledges that the burden of demonstrating a lack of
financial capacity is his. Paramedics Electromedicina Comercial, Ltda. v. GE Medical
Systems Information Technologies, Inc., 369 F .3d 645 (2d Cir. 2004). Yet the notice
provides no detail. The defendant's substantiation of his inability to comply with the
Court's order must be made "categorically and in detail." SEC v. Bilzerian, 112 F. Supp.
2d 12, 16 (D.D.C. 2000) (internal citations omitted). A defendant must demonstrate that
compliance is "factually impossible." United States v. Rylander, 460 U.S. 752, 757, 103
S.Ct. 1548, 75 L.Ed.2d 521 (1983). And a court is not required to credit an alleged
contemnor's "incredible" denials of an ability to pay. Huber at 10 (internal citations
omitted). As the Court has ordered Bronson to provide proof of his lack of capacity, the
Commission respectfully requests that Bronson provide all such proof by November 10th
so that Commission counsel may review it and consider Bronson's claims before the
hearing.
At a minimum, the Commission respectfully requests that the Court also order
Bronson to produce the documents requested in the motion to compei DE 282, including
the sources of funds for the $200,000 and $300,000 payments Bronson made.
Commission counsel also requests that for the period from July 1 to the present, Bronson
produce: (i) proof of all sources of income and the amount of that income; (ii) for all
other funds received directly or indirectly the amount and source of those funds; (iii)
proof of all expenses he claims for himself and his family; (iv) all amounts he has
transferred to third parties; (v) documents reflecting all fmancial accounts for the
Bronson family and every Top Knot entity and any other entity or person that pays

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Case 7:12-cv-06421-KMK Document 291 Filed 10/27/21 Page 2 of 2

expenses for the Bronsons; and (vn") a current mortgage statement for the Bronsons'
residence.
In addition, Commission counsel respectfully requests that witnesses ordered to
appear last time, John Kellas, Dawn Kellas Bronson, Dr. Stuart Weinstein and Jordan
Weinstein be again ordered to appear along with the liquidating trustee, Ryan
Stumphauzer.
Respectfully submitted,
sfMaureen Peyton King
The discovery requests in this letter are entirely reasonable. Mr. Bronson is to produce all
the materials and information listed herein by 11/"17/21. No extensions will be granted.
Failure to produce these materials could 1esult in Mr. Bronson being found in contempt.
, at / O : 00. At a minimum, the
The Court will conduct a hearing on // /. ~ J
witnesses listed herein must be prepared to testify.

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