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SEC case against Lauer ends with a whimper
Internal Administrator
Posted: Saturday, August 13, 2011
Joined: 10/12/2010
Posts: 5779


Posted: 8/18/2009 8:21:30 AM

By: jurisper

The SEC asked for civil penalty against Lauer of $1M.

The judge's order this week says:

"Lauer’s violations involved fraud, deceit, manipulation, and deliberate disregard of regulatory requirements. Lauer’s conduct resulted in hundreds of millions of dollars in investor losses. Lauer’s conduct was egregious, he acted with scienter, and the misconduct lasted for several years. The seriousness of the fraud and the principal role played by Lauer make appropriate a fine approximating the maximum [in this case, $43.6M]."

But then:

"In determining the amount of penalty, however, the Court is cognizant that it has already ordered Lauer to pay more than $62 million in disgorgement and prejudgment interest, and the fact that Lauer is now being criminally prosecuted for
these same violations. Lauer claims his current financial condition is destitute. In light of the unlikelihood of any recovery, and taking into account all of the facts and
circumstances of the case, the Court will impose a civil penalty against Lauer in the amount of $500,000.00 [ie, half of what the prosecution asked for]."


 

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