leadorfollow
DIAMOND JEDI MASTER
SEC motion for judgement against JE...
« Thread Started Today at 11:32am »
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from pb66...
viewer.zoho.com/docs/scaxEinteresting parts.....
Over a twenty-month period, CMKM improperly issued up to 622 billion shares of purportedly unrestricted stock based on both written authorizations and attorney opinion letters. (SF No. 13.) These authorizations and opinions were often facially inadequate, suspect, and inconsistent. (SF No. 13.) CMKM’s transfer agent nevertheless issued sheaves of unlegended stock certificates.
Bagley regularly followed Edwards’ directives, discussed CMKM stock with him, and issued unrestricted CMKM stock certificates at his instruction. (SF No. 54.) Edwards gave Bagley about $200,000 in a purported loan. (See SF No. 53.) In addition to suspicious payments from Edwards, Bagley directly and indirectly received payments in excess of $344,000 from Kathleen and Anthony Tomasso (“the Tomassos”) during 2003 and 2004. (SF No. 55.) The Tomassos, who sold billions of shares of CMKM stock, were nominees for Edwards. (SF No. 56.) From December 2002 through September 2004, on approximately 60 separate occasions, 1st Global issued a total of more than 589.7 billion shares of CMKM stock in certificate form without a restrictive legend to the Edwards Entities, Edwards’ nominees, Casavant’s nominees, and others.2(SF No. 58.) To accommodate these issuances, from November 2002 through August 2004, CMKM increased its number of authorized shares five times, from 10.5 billion to 800 billion shares.
Upon receiving the stock certificates, NevWest contacted 1st Global to verify that the certificates were “validly issued” and unrestricted. (SF No. 92.) Bagley or her son vouched for all of Edwards’ stock certificates, and NevWest deposited all of them into Edwards’ accounts
NevWest primarily sold the CMKM stock to one other broker-dealer until mid-October 2004, when that broker-dealer informed NevWest that it would no Case 2:08-cv-00437-LRH-RJJ Document 99-2 Filed 12/16/2008 Page 11 of 22 Courtesy of Proboards 66121234567891011121314151617181920212223242526longer trade CMKM shares because the Saskatchewan Financial Services Commission, a Canadian regulator, had issued a cease-and-digest order regarding CMKM stock. (SF No. 97.) NevWest then found a new buyer and continued selling CMKM stock
what regulator are they talking about...??
After a regulator raised concerns about the third-party wires in late 2004, Anthony Santos, Anderson’s supervisor, advised Edwards to open corresponding bank accounts for each Edwards Entity in order to avoid “confusion.”
John Edwards’ liability is not at issue in this motion
these cases would be worth looking up...?
Courts have “broad equity powers to order the disgorgement of ‘ill-gotten gains’ obtained through the violation of the securities laws.” SEC v. First Pacific Bancorp, 142 F.3d at 1191; see also SEC v. JT Wallenbrock & Assoc., 440 F.3d 1109, 1113 (9th Cir. 2006).
line 19 is blank or missing wording...?
so this would be in addition to the initial amount sought in the judgement...right...?
A third-tier penalty is therefore appropriate. When imposing penalties, a court can award either a maximum of $120,000 or the “gross pecuniary gain” per violation of the Securities Act. For example, in one fraud case, the court determined the penalty amount by assessing a penalty for each of four different misrepresentations made. SEC v. Coates, 137 F. Supp. 2d 413, 428-30 (S.D.N.Y. 2001). In another case, the Court assessed a penalty for each of 12 investors defrauded. See Kenton Capital, 69 F. Supp. 2d 1, 17 n.15 (D.C. 1998) (awarding $1.2 million penalty based on an assessment of a $100,000 third-tier penalty for each of 12 investors that defendant defrauded). Given the recurrent nature of Edwards’ conduct, the penalties here could be quite high. From March 2003 through May 11, 2005, Edwards sold 259,890,832,854 shares of CMKM stock in 569 separate transactions at NevWest, generating proceeds of more than $53.3 million in proceeds. (See SF No. 62.) Thus, the Court has discretion to impose a penalty as high as 569 times $120,000 or 569 times $26.4 million
+ 6850. per week interest after 12/31/08.....
notice here no mention of Roger Glenn......
42. Brian Dvorak, age 52, resided in Las Vegas at all relevant times. As CMKM’s attorney, Dvorak prepared hundreds of bogus opinion letters supporting the issuance of purportedly unrestricted CMKM stock. During the relevant period, Dvorak also operated the website
www.144opinionletters.com. Dvorak now resides in Boulder, Colorado. In October 2007, Dvorak filed for bankruptcy under Chapter 7 of the Bankruptcy Code. Dvorak is licensed to practice law in Nevada
62. To accommodate these issuances, from November 2002 through August 2004, CMKM increased its number of authorized shares five times, from 10.5 billion to 800 billion shares. The purportedly unrestricted CMKM stock issuances were based on obviously incomplete and suspicious and, in some cases, forged documentation
Moreover, the names listed in the letter did not completely match the names to whom Bagley issued certificates
now I thought Roger Glenn wrote the opinion letters from 500 to 800 billion not all dvork...
72. Over a ten-month period, Dvorak wrote at least 464 opinion letters, the vast majority of which contained baseless or fabricated justifications for the issuance of unrestricted CMKM stock. Armed with these letters, in 2004, CMKM issued more than 606 billion unrestricted shares to the Edwards Entities, Casavant’s nominees, and others
where is the order to disgorge nevwest vs the 100,000 fine..( I plasted the IRS lady for this one)
98. NevWest charged Edwards a 5% commission rate, in contrast to the 3-4% rate it usually charged, and Edwards’ trades generated more than $2,575,000 in commissions for the firm. Complaint ¶ 55 (White Dec. Ex. 3). 99. Over the entire period of the fraud, Edwards’ commissions on the CMKM trades amounted to 35.7% of NevWest’s total revenue
now this letter I would like to see & isn't this lawyer in deep sh#t...?
109. Edwards provided NevWest with a short letter from his counsel opining without explanation that Edwards’ trading practices were legal
months of inquiries from ANOTHER REGULATOR...lack of action on regulator(S)...imo
110. Even months after inquiries from another regulator, after the Commission requested NevWest’s records related to Edwards, and after the Commission suspended trading in CMKM’s stock and initiated deregistration proceedings, NevWest allowed Edwards to sell as much CMKM stock as he wished
leadorfollow
DIAMOND JEDI MASTER
Re: SEC motion for judgement against JE...
« Reply #1 Today at 11:32am »
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pedros' math.....?
d**n!
Thus, the Court has discretion to impose a penalty as high as 569 times $120,000 or 569 times $26.4 million.
$68,280,000 to $1,502,160,000 penalty!
jcnelson298
DIAMOND DIGGER
Re: SEC motion for judgement against JE...
« Reply #2 Today at 12:54pm »
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leadorfellow ,,, I think you are off 1 zero ,,,, it should be 15,021,600,000 .....
millionaires.proboards86.com/index.cgi?board=main&action=display&thread=23823