The U.S. District Court for the District of Colorado refused Jan. 17 to sign off on a proposed settlement of a Securities and Exchange Commission enforcement action against two Colorado men and their company who allegedly defrauded investors of more than $6 million in a Ponzi scheme (SEC v. Bridge Premium Finance LLC, D. Colo., No. 1:12-cv-02131-JLK-BNB, 1/18/13).
In August 2012, the commission obtained emergency relief temporarily halting the alleged scheme (158 SLD, 8/16/12).
Without detailing the underlying accord, Judge John L. Kane Jr. said he “refuse[s] to approve penalties against a defendant who remains defiantly mute as to the veracity of the allegations against him.”
“A defendant's options in this regard are binary; he may admit the allegations or he may go to trial.”
Kane also objected to language in which the defendants waived their right to the entry of factual findings and legal conclusions pursuant to Fed.R.Civ.P. 52 and their right to appeal. “These findings are important to inform the public and the appellate courts,” the court wrote.
Kane is not the first judge to object to an SEC settlement in which the alleged wrongdoer neither admits nor denies misconduct. The agency currently is embroiled in litigation over the refusal of Judge Jed Rakoff, U.S. District Court for the Southern District of New York, to sign off on a proposed $285 million pact with (C) Citigroup Global Markets Inc. (see, e.g., 06 SLD, 1/9/13).
To see the decision, go to /uploadedFiles/Content/News/Legal_and_Business/Bloomberg_Law/Legal_Reports/bridge(1).pdf.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).