SEC v. Michael Lauer, No. LR-19590, Southern District of Florida (Mar. 6, 2006) — Press Release
raw: Michael Lauer, et al.
Michael Lauer, et al., No. LR-19590 (Mar. 6, 2006)
Michael Lauer was held in contempt by Judge Kenneth A. Marra for willfully violating an asset‑freeze order and other discovery orders, transferring at least $172,258, and was ordered to return the assets, pay $1,000‑per‑day penalties and reimburse SEC fees.
On January 24, 2006, U.S. District Judge Kenneth A. Marra found Michael Lauer in contempt for violating a July 10, 2003 asset‑freeze order and for refusing to participate in the SEC's discovery process. The court determined Lauer transferred at least $172,258 after the freeze and failed to answer interrogatories or appear for a deposition. As sanctions, his affirmative defenses were stricken, he was barred from introducing undisclosed evidence, ordered to return the transferred assets within 20 days or face $1,000 daily penalties, and required to reimburse the SEC’s attorneys’ fees and travel costs.
The Securities and Exchange Commission brought a contempt action against Michael Lauer, alleging he willfully defied a court‑ordered asset freeze imposed on July 10, 2003. On January 24, 2006, U.S. District Judge Kenneth A. Marra held Lauer in contempt, finding clear and convincing evidence that he transferred at least $172,258 after the freeze and obstructed the discovery process by refusing to appear for a deposition, answer interrogatories, and produce documents. The judge ordered that Lauer’s affirmative defenses be stricken and that he may not introduce any evidence or witnesses not already disclosed. He must return the improperly transferred assets within 20 days, or he will incur a daily monetary penalty of $1,000. Additionally, Lauer was ordered to reimburse the SEC for attorneys’ fees, litigation costs, and travel expenses incurred in the contempt proceedings. The sanctions underscore the court’s intolerance for bad‑faith conduct and aim to restore the assets and compensate the SEC for its enforcement efforts.
Exhibits & Attached Documents (1)
Extracted insights
- $172K $172,258 $100K–$1M
- $1K $1,000 <$10K
- person michael lauer
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- Michael Lauer was held in contempt for violating asset freeze order, failing to participate in discovery, and repeatedly violating court orders
- Securities and Exchange Commission announced Michael Lauer was held in contempt on January 24, 2006
- United States District Judge Kenneth A. Marra found Michael Lauer in contempt of court
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 19590 / March 6, 2006 Securities and Exchange Commission v. Michael Lauer, et al., Case No. 03-80612-CIV-MARRA/VITUNAC (S.D. Fla). Michael Lauer Held in Contempt for Violating Asset Freeze Order, Acting in Bad Faith by Failing to Take Part in the Discovery Process and Repeatedly Violating Court Orders The Securities and Exchange Commission announced that on January 24, 2006, the Honorable Kenneth A. Marra, United States District Judge for the Southern District of Florida found Defendant Michael Lauer in contempt of Court for violating the Court's asset freeze order, acting in bad faith by failing to take part in the discovery process and repeatedly violating Court Orders. After an evidentiary hearing on December 6, 2005, the Court found that the Commission had established by clear and convincing evidence that Lauer violated numerous court orders, including the Court's Asset Freeze Order and Orders to appear for his deposition, fully and completely answer the Commission's Interrogatories, and produce documents. Specifically, the District Judge ordered that: (1) Lauer's affirmative defenses be stricken; (2) Lauer will not be permitted to present any witness or introduce any evidence that he has not already disclosed and produced; (3) Lauer shall return all assets that he transferred since his asset freeze on July 10, 2003, which is at least $172,258, within 20 days or face a daily monetary penalty of $1,000 per day; and (4) Lauer shall reimburse the SEC's attorneys' fees and costs in connection with bringing the contempt proceedings and the SEC's travel costs and expenses. A copy of the District's Court Order (PDF format, 674 KB) may be found at the Commission's website. For further information, see Litigation Release No. 18226 (July 10, 2003), Litigation Release No. 18247 (July 23, 2003), Litigation Release No. 18991 (December 2, 2004), Litigation Release No. 19018 (December 30, 2004), Litigation Release No. 19019 (December 30, 2004), Litigation Release No. 19042 (January 21, 2005) and Litigation Release No. 19186 (April 15, 2005). SEC Complaint in this matter
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 19590 / March 6, 2006 Securities and Exchange Commission v. Michael Lauer, et al., Case No. 03-80612-CIV-MARRA/VITUNAC (S.D. Fla). Michael Lauer Held in Contempt for Violating Asset Freeze Order, Acting in Bad Faith by Failing to Take Part in the Discovery Process and Repeatedly Violating Court Orders The Securities and Exchange Commission announced that on January 24, 2006, the Honorable Kenneth A. Marra, United States District Judge for the Southern District of Florida found Defendant Michael Lauer in contempt of Court for violating the Court's asset freeze order, acting in bad faith by failing to take part in the discovery process and repeatedly violating Court Orders. After an evidentiary hearing on December 6, 2005, the Court found that the Commission had established by clear and convincing evidence that Lauer violated numerous court orders, including the Court's Asset Freeze Order and Orders to appear for his deposition, fully and completely answer the Commission's Interrogatories, and produce documents. Specifically, the District Judge ordered that: (1) Lauer's affirmative defenses be stricken; (2) Lauer will not be permitted to present any witness or introduce any evidence that he has not already disclosed and produced; (3) Lauer shall return all assets that he transferred since his asset freeze on July 10, 2003, which is at least $172,258, within 20 days or face a daily monetary penalty of $1,000 per day; and (4) Lauer shall reimburse the SEC's attorneys' fees and costs in connection with bringing the contempt proceedings and the SEC's travel costs and expenses. A copy of the District's Court Order (PDF format, 674 KB) may be found at the Commission's website. For further information, see Litigation Release No. 18226 (July 10, 2003), Litigation Release No. 18247 (July 23, 2003), Litigation Release No. 18991 (December 2, 2004), Litigation Release No. 19018 (December 30, 2004), Litigation Release No. 19019 (December 30, 2004), Litigation Release No. 19042 (January 21, 2005) and Litigation Release No. 19186 (April 15, 2005). SEC Complaint in this matter