Securities and Exchange Commission v. Bronson et al
| Securities and Exchange Commission |
| Edward Bronson and E-Lionheart Associates, LLC |
| Fairhills Capital, Inc. |
| 7:2012cv06421 |
| August 22, 2012 |
| US District Court for the Southern District of New York |
| White Plains Office |
| New York |
| Kenneth M. Karas |
| Securities/Commodities/Exchanges |
| 15 U.S.C. ยง 77 |
| None |
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Filing
581
ORDER MODIFYING ASSET FREEZE AND ORDERS REGARDING DEFENDANT EDWARD BRONSONS NOTIFICATION REQUIREMENTS FOR CERTAIN CASH RECEIPTS AND DISBURSEMENTS. IT IS HEREBY ORDERED that Bronson may pay the expenses listed in Table A, up to 110% of the amou nts set forth in Table A, without being deemed to have violated the asset freeze and without prior notice to the SEC; and IT IS FURTHER ORDERED that the Bronsons are not required to promptly notify the SEC of receipt of Bronson's Salary of 6;2,000 per week. However, any commission or other income of $1,000 or more may be deposited into the Bronsons' bank account without prior approval of the SEC, but, whether received in one lump sum or in any series of payments, continues to require prompt notification to the SEC. However, such funds shall not be disbursed without prior approval from the SEC. (Signed by Judge Kenneth M. Karas on 1/18/24) (yv)
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Filing
536
ORDER granting 468 Motion for Order to Show Cause; granting 468 Motion re: 468 MOTION for Order to Show Cause . MOTION Finding of Civil Contempt and Turnover ., 501 LETTER MOTION for Extension of Time and Providing a Status Update addressed to Judge Kenneth M. Karas from Jointly from Maureen Peyton King and Philip Reizenstein dated 3.31.23., 506 LETTER MOTION for Conference addressed to Judge Kenneth M. Karas from Dawn Bronson dat ed June 7 2023. ; terminating 501 Letter Motion for Extension of Time; terminating 506 Letter Motion for Conference re: 468 MOTION for Order to Show Cause . MOTION Finding of Civil Contempt and Turnover ., 501 LE TTER MOTION for Extension of Time and Providing a Status Update addressed to Judge Kenneth M. Karas from Jointly from Maureen Peyton King and Philip Reizenstein dated 3.31.23., 506 LETTER MOTION for Conference addressed to Ju dge Kenneth M. Karas from Dawn Bronson dated June 7 2023. For the foregoing reasons, the Court finds that Mr. and Mrs. Bronson are in contempt of the Court's Orders and imposes the additional coercive and remedial sanctions described above. Th e Court also directs that the SEC provide the above-specified proposed disgorgement and turnover orders. The Clerk of Court is respectfully directed to terminate the pending motions. (See Dkt. Nos. 468, 501, 506.) SO ORDERED. (Signed by Judge Kenneth M. Karas on 9/26/23) (yv)
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Filing
535
ORDER with respect to 530 Letter Motion to Compel. Mr. Bronson is to respond to this letter by 9/27/23. So Ordered. (Signed by Judge Kenneth M. Karas on 9/20/2023) (tg)
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Filing
521
ORDER AS TO RELEASE OF DEFENDANT EDWARD BRONSON AND AS TO PAYMENT PLAN TERMS FOR EDWARD AND DAWN BRONSON granting 519 Motion re: 519 MOTION Release Defendant from Incarceration; Turnover; Enter Finding of Civil Contempt on Consent; and O ther Relief. . IT IS HEREBY ORDERED THAT Defendant is released from incarceration for civil contempt. Defendant shall be released directly from the jail forthwith; IT IS FURTHER ORDERED THAT within (5) business days of his release, Bro nson shall amend as necessary and verify in writing to the SEC that the accountings he provided to the Securities and Exchange Commission ("SEC") are complete; IT IS FURTHER ORDERED THAT for the period of six months from Defendants release from incarceration for contempt, Defendant agrees to pay to the SEC fifty percent (50%) of all of his gross monthly earnings from whatever source derived each month over $5,000, measured in 30 day increments. The day after Defendant' ;s release shall be considered day 1 of the 30 day period. IT IS FURTHER ORDERED THAT to substantiate that Defendant has paid 50% of his gross monthly earnings over $5,000 to the SEC, Defendant shall submit to the SEC a sworn calculation of the amount remitted along with copies of all financial account statements for himself, Dawn Bronson, his children, his father-in-law, any escrow account(s) in which he holds funds, all the Bronson Entities' accounts he holds or controls d irectly or indirectly, and all accounts that receive or disburse funds on behalf of him or his family; IT IS FURTHER ORDERED THAT within two (2) months of Defendant's release, he will submit a reasonable budget to the SEC; IT IS FURTHER ORDERE D THAT based on the budget and Bronson's average monthly earnings, the SEC may negotiate terms for subsequent six month periods that increase the payment to the SEC. If the parties do not agree to any increase the SEC seeks, payments at a rate of 50% split of gross monthly earnings over $5,000 shall continue until the Court orders otherwise; IT IS FURTHER ORDERED THAT Defendant, Dawn Bronson, Bronson's children, and the Bronson Entities shall not undertake any financial co mmitment that will increase Defendant's monthly expenses, directly or indirectly, without receiving approval from the SEC; IT IS FURTHER ORDERED THAT Defendant and Dawn Bronson shall decrease their monthly household expenses to a reasonable l evel; IT IS FURTHER ORDERED THAT Defendant and Dawn Bronson will not open additional lines of credit, credit cards, borrow funds or make any transfer over $1,000, directly or indirectly, through any other individual or entity including but not limited to the Bronson Entities, without approval from the SEC; IT IS FURTHER ORDERED THAT the $90,000 in proceeds from the Escalade, held in escrow, shall be turned over to the SEC within (3) business days of receipt of this Order; IT IS FURT HER ORDERED THAT Defendant and Dawn Bronson shall submit to the Court (under seal) and the SEC an accounting showing a need for a carve out of funds from the turnover and a proposed allocation of the $30,000 carve out he seeks. Any carve out of $30,000 or less shall come from funds held by Bruce Bent. Defendant and Dawn Bronson agree that the Court will order an appropriate carve out amount based on their submissions and the remainder (if any) shall be remitted to the SEC; IT IS FURTHER ORDERED THAT the asset freeze remains in effect and agree that it shall continue to remain in effect until all turnover issues are resolved; IT IS FURTHER ORDERED THAT Defendant remains in contempt until he fully pays the outstanding disgorg ement ordered in the Final Judgment; IT IS FURTHER ORDERED THAT any further contempt of the Court's Orders or any showing that Defendant has been untruthful in his sworn representations concerning his financials will constitute further contempt and may result in further sanctions including his incarceration; IT IS FURTHER ORDERED THAT Defendant is in contempt of the Court' Orders in connection with the Top Knot funds and penny stock transactions. The SEC and the Defendant expect to be in a position to present to the Court within the next 90 days either a settlement of the sanctions or a motion requesting that the Court determine the appropriate monetary relief. (Signed by Judge Kenneth M. Karas on 6/29/23) (yv)
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Filing
488
MEMO ENDORSED ORDER granting 486 Motion for Set Dates for Any Filings or Conference the Court Orders re: 486 MOTION Set Dates for Any Filings or Conference the Court Orders . ENDORSEMENT: Given that the deadline for the latest filing from the Bronsons has not yet passed, this application is granted. Also, with respect to this filing and all future filings, the SEC may serve all its submissions by email to Dawn Bronson. So Ordered. (Signed by Judge Kenneth M. Karas on 2/17/23) (yv)
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Filing
485
ORDER with respect to 484 Letter Motion for Discovery. Mr. Bronson is to respond to this letter by 2/17/23. The SEC may serve Mr. Bronson with this letter by emailing it to Dawn Bronson. So Ordered. (Signed by Judge Kenneth M. Karas on 2/10/2023) (tg)
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Filing
428
ORDER, The Court will hold an evidentiary hearing in this Action on Monday, December 12, 2022 at 10:30 AM EST. (See Order (Dkt. No. 418).) The Court has ordered several individuals to appear as witnesses at that time. (Id.) The SEC does not objec t to three of those witnesses testifying remotely: Mr. Pena, Mr. Stumphauzer and Mr. Strickland. (See Dkt. No. 419.) For those witnesses appearing remotely, the Court provides a Microsoft Teams meeting invitation below: Join Hearing Meeting ID: 297 578 990 835 Passcode: jBNdqW Download Teams | Join on the web. The Court orders that all witnesses appearing remotely join at the scheduled start of the hearing, use a device that allows for video conferencing, and mute their lines after join ing. The Court further orders that all witnesses appearing remotely provide a phone number where they may be reached by the Court on the day of the hearing. For avoidance of doubt, all other witnesses ordered to appear must appear in-person at Cour troom 521 of the Hon. Charles L. Breiant Jr. United States Courthouse, 300 Quarropas St., White Plains, NY 10601. Any individual ordered to testify who fails to appear without any legal justification may be subject to a finding of civil contempt. SO ORDERED. ( Evidentiary Hearing set for 12/12/2022 at 10:30 AM in Courtroom 521, 300 Quarropas Street, White Plains, NY 10601 before Judge Kenneth M. Karas.) (Signed by Judge Kenneth M. Karas on 12/6/22) (yv)
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Filing
423
MEMO ENDORSEMENT on PRO SE MOTION TO APPEAR AT HEARING VIA REMOTE ELECTRONIC VIDEO: granting 421 Motion for Leave to Appear. ENDORSEMENT: Granted. SO ORDERED. (Signed by Judge Kenneth M. Karas on 11/22/2022) (ama)
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Filing
418
ORDER, IT IS HEREBY ORDERED that the following persons will appear prepared to testify at the United States District Courthouse, 300 Quarropas St., White Plains, New York at 10:30 a.m. E.T. on December 12, 2022: Edward Bronson; Dawn Bronson; John K ellas; Bruce Bent; Paul Strickland; Paul Rachmuth in his personal capacity, for his law firm, and for Phase 1 Operations, Inc.; Marc Pena, Esq.; and Ryan Stumphauzer. IT IS FURTHER ORDERED that any person ordered to testify who fails to appear with out any legal justification may be subject to a finding of civil contempt. IT IS FURTHER ORDERED that the SEC will serve this Order on each of the witnesses ordered to appear. The SEC and Counsel for Mr. Bronson will confer to the extent necessary to arrange for Mr. Bronson's appearance at the December 12, 2022 Hearing. ( Evidentiary Hearing set for 12/12/2022 at 10:30 AM before Judge Kenneth M. Karas.) (Signed by Judge Kenneth M. Karas on 11/4/22) (yv)
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Filing
416
ORDER granting 415 Letter Motion to Compel. The Court grants this request and directs the SEC to submit a proposed order to the Court forthwith. SO ORDERED.. (Signed by Judge Kenneth M. Karas on 11/3/2022) (kv)
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Filing
414
NOTICE OF TELECONFERENCE INFORMATION: For the week of October 31, 2022, the Court will hold all civil conferences, hearings, and/or oral arguments in the above-numbered Action by telephone. Counsel shall call the following number at the designated time: Meeting Dial-In Number (USA toll-free): (888) 363-4749 Access Code: 7702195 Please enter the conference as a guest by pressing the pound sign (#). Given that much of the Court is operating remotely and has limited mail capability, counsel invo lved in any pro se cases shall mail a copy of this Notice to or otherwise inform the pro se party of the above teleconference information. Counsel in any pro se inmate cases shall ensure that the pro se party is on the line before calling the above -referenced number. For initial conferences, counsel shall submit a proposed case management and discovery schedule via ECF by 5 p.m. on the evening before the initial conference. Any requests for adjournments should be filed as soon as possible and clearly explain why the conference should be adjourned. (Signed by Judge Kenneth M. Karas on 10/28/2022) (rro)
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Filing
412
ORDER granting 411 Letter Motion to Compel. All three requests are granted. SO ORDERED. (Signed by Judge Kenneth M. Karas on 10/27/2022) (jca)
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Filing
405
NOTICE OF TELECONFERENCE INFORMATION: For the week of October 10, 2022, the Court will hold all civil conferences, hearings, and/or oral arguments in the above-numbered Action by telephone. Counsel shall call the following number at the designated time: Meeting Dial-In Number (USA toll-free): (888) 363-4749 Access Code: 7702195. Please enter the conference as a guest by pressing the pound sign (#). Given that much of the Court is operating remotely and has limited mail capability, cou nsel involved in any pro se cases shall mail a copy of this Notice to or otherwise inform the pro se party of the above teleconference information. Counsel in any pro se inmate cases shall ensure that the pro se party is on the line before calling the above-referenced number. For initial conferences, counsel shall submit a proposed case management and discovery schedule via ECF by 5 p.m. on the evening before the initial conference. Any requests for adjournments should be filed as soon as possible and clearly explain why the conference should be adjourned. SO ORDERED. (Signed by Judge Kenneth M. Karas on 10/7/2022) (vfr)
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Filing
402
POST-JUDGMENT WRIT OF GARNISHMENT granting 401 Motion for Writ of Garnishment. The Court having reviewed the Plaintiffs Application for Post-Judgment Writ of Garnishment, hereby issues this Post-Judgment Writ of Garnishment. The Securities and E xchange Commission ("SEC") has information indicating that Garnishee may have possession, custody or control of property in which Defendant has a nonexempt interest. Pending further order of this Court, Garnishee is hereby directed to wit hhold and retain any property in its possession, custody or control in which Defendant has an interest at the time this Writ is served or in which the Defendant may obtain an interest in the future, including Defendant's non-exempt disposable earnings. If Garnishee fails to withhold property in accordance with this Writ, Garnishee may be held in contempt by the Court or subject to other sanctions. This Writ of Garnishment is a continuing writ. Instructions are attached to and should be considered part of this writ. To assist the Garnishee with its obligations under this Writ, the following information is provided as further set forth in this Order. IT IS SO ORDERED. (Signed by Judge Kenneth M. Karas on 9/20/22) (yv) Transmission to Orders and Judgments Clerk for processing.
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Filing
398
POST-JUDGMENT WRIT OF GARNISHMENT granting 378 Motion for Writ of Garnishment. Pending further order of this Court, Garnishee is hereby directed to withhold and retain any property in its possession, custody or control in which Defendant has an interest at the time this Writ is served or in which the Defendant may obtain an interest in the future, including Defendant's non-exempt disposable earnings. If Garnishee fails to withhold property in accordance with this Writ, Garnishee may be held in contempt by the Court or subject to other sanctions. This Writ of Garnishment is a continuing writ. Instructions are attached to and should be considered part of this writ. To assist the Garnishee with its obligations under this Writ, the following information is provided as further set forth in this Judgment. IT IS SO ORDERED. (Signed by Judge Kenneth M. Karas on 9/15/22) (yv)
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Filing
352
ORDER with respect to 351 Letter Motion to Stay re: 351 LETTER MOTION to Stay re: 328 Warrant Returned Incarceration Pending Appeal addressed to Judge Kenneth M. Karas from Ryan D. O'Quinn dated May 20, 2022. The SEC is to respond to this letter by 5/27/22. (Signed by Judge Kenneth M. Karas on 5/23/2022) (ate)
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Filing
347
OPINION & ORDER re: 336 MOTION - Motion For Relief From The Contempt Judgment And Subsequent Orders - ECF 223, 302, 321 and 326 re: 326 Order on Motion to Compel, 302 Order on Motion to Compel, Order on Motion for Miscellaneous Relief, 321 Order filed by Edward Bronson.For the foregoing reasons, Bronson's Motion for Relief from the Final Judgment and Motion for Relief from the Court's Contempt Orders are denied. The Clerk of Court is respectfully directed to terminate the pending Motions. (Dkt. Nos. 300, 336). (Signed by Judge Kenneth M. Karas on 4/29/2022) (rro)
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Filing
333
NOTICE OF TELECONFERENCE INFORMATION: For the week of February 28, 2022, the Court will hold all civil conferences, hearings, and/or oral arguments by telephone. Counsel shall call the following number at the designated time: Meeting Dial-In Numbe r (USA toll-free): (888) 363-4749 Access Code: 7702195 Please enter the conference as a guest by pressing the pound sign (#). Given that much of the Court is operating remotely and has limited mail capability, counsel involved in any pro se cases s hall mail a copy of this Notice to or otherwise inform the pro se party of the above teleconference information. Counsel in any pro se inmate cases shall ensure that the pro se party is on the line before calling the above-referenced number. For i nitial conferences, counsel shall submit a proposed case management and discovery schedule via ECF by 5 p.m. on the evening before the initial conference. Any requests for adjournments should be filed as soon as possible and clearly explain why the conference should be adjourned. SO ORDERED. (Signed by Judge Kenneth M. Karas on 2/25/2022) (ks)
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Filing
326
ORDER granting 325 LETTER MOTION to Compel Defendant Edward Bronson to Pay pursuant to a Court ordered installment plan. The SEC is to provide an arrest warrant for Mr. Bronson ASAP. SO ORDERED. (Signed by Judge Kenneth M. Karas on 2/14/2022) (jca)
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Filing
321
ORDER: terminating 320 Letter Motion to Compel. Mr. Bronson has repeatedly and brazenly flouted the Court's multiple orders to pay disgorgement over the past several years. Part of his effort to ignore and circumvent the Court's orders has involved perjury from the witness stand and part of this effort has been to wait until final warnings were issued and then engage in the mirage of making payments that ultimately bounced. Now, on the day that he was to report to the Marshals Ser vice by noon, Mr. Bronson has attempted to make payment, but the SEC cannot verify whether there are sufficient funds for these payments. Given the clear pattern of Mr. Bronsons contempt, there is no reason to give Mr. Bronson the benefit of the doub t. These payments were to be made well before today, and if Mr. Bronson wanted to avoid the consequences of his contempt, he should have made payment earlier. Therefore, Mr. Bronson is to be immediately taken into the custody of the US Marshals Service and imprisoned until further order of the Court. SO ORDERED. (Signed by Judge Kenneth M. Karas on 1/28/2022) (ama)
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Filing
318
ORDER granting 317 Letter Motion to Compel. Mr. Bronson has been repeatedly warned that failure to comply with the Court's disgorgement orders would result in a finding of contempt and imprisonment. Most recently, the Court ordered that Mr. Bronson make timely payments or face imprisonment. Per this letter from the SEC, it is clear that Mr. Bronson has once again failed to make a timely payment. Accordingly, he is to report to the US Marshals Service in the White Plains courthouse (300 Quarropas Street) by no later than 12 noon so he can be designated to a prison. So Ordered. (Signed by Judge Kenneth M. Karas on 1/27/2022) (tg)
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Filing
302
ORDER granting 282 Letter Motion to Compel; terminating 300 Motion re: 282 LETTER MOTION to Compel Edward Bronson to Describe fund sources; submit payments via wire and request for appropriate sanctions addressed to Judge K enneth M. Karas from Maureen Peyton King dated September 15, 2021., 300 MOTION for Relief from the Final Judgment Filed June 8, 2017 re: 178 Memorandum & Opinion, 186 Judgment, . IT IS HEREBY ORDERED that Bronson pay $500 ,000 by December 23, 2021 and resume the Court-ordered payment schedule by paying $1.1 million per month on January 13 and on the 13th of each month thereafter until Bronson has paid the Judgment in full. The final payment shall include the ba lance of prejudgment interest, disgorgement and all post-judgment interest (which shall continue to accrue until payment is made in full). Prior to the due date of this payment, counsel for Bronson shall contact the Commission to obtain the proper payoff amount due. FURTHER ORDERED that, on or before each payment is due Bronson must file proof of each payment along with proof of funds available to make the payment on ECF. FURTHER ORDERED that if Bronson fails to pay and/or fails to file proo f of payment on ECF by the due date of the payment along with proof of funds available to make the payment the U.S. Marshals Service for the Southern District of New York shall take Bronson into custody for his civil contempt. To effectuate Bronson 's arrest, the U.S. Marshals Service may enter his residence at 1275 Fairhills Drive, Ossining, New York 10562 or any other residence or place of business where Bronson is located. The U.S. Marshals Service may use such force as reasonably ne cessary to arrest Bronson and take him into custody. FURTHER ORDERED that Mr. Bronson shall remain incarcerated until he complies with the Orders of this Court. FURTHER ORDERED that Bronson will make each payment to the Securities and Exchange Commi ssion using Pay.gov: https://pay.gov/public/form/start/39621196 or wire transfer. FURTHER ORDERED that Bronson shall surrender his passport to his counsel, Ryan O'Quinn, forthwith. Mr. O'Quinn shall file proof that he has custody of Bronson's passport on ECF by November 26, 2021. (Signed by Judge Kenneth M. Karas on 11/24/2021) (ate)
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Filing
294
ORDER granting 293 Letter Motion for Discovery. All requests are granted: Mr. Bronson is to provide substantial details about his and Top Knot's offshore income, assets and cashflow, a current mortgage statement for the residence where the B ronsons reside. Also, Mr. Bronson is to bring multiple copies of each document produced in response to the November 22 hearing. Failure to comply with these directives could result in a contempt finding. Mr. Rachmuth is to appear and be prepared to testify at the November 22 hearing, which will not be adjourned. (Signed by Judge Kenneth M. Karas on 11/18/2021) (ate)
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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)
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Filing
278
ORDER: IT IS ORDERED that Ryan Stumphauzer shall serve as Liquidating Trustee for the purpose of causing the sale of the Designated Securities in amounts and quantities sufficient to generate the proceeds necessary to timely satisfy the periodic payments ordered by this Court and the fees and costs associated with his appointment. IT IS ORDERED that the Liquidating Trustee shall be authorized to and is hereby directed to liquidate the Designated Securities, subject to a daily trading limit for each issuer equal to 10% of the trading volume for the security on the last day on which OTCmarkets.com reported trading volume. IT IS ORDERED that Top Knot and Bronson are hereby ordered and directed to take all reasonable efforts to cooperate with the Liquidating Trustee to facilitate his performance of all duties and obligations under this Order. IT IS ORDERED that the Liquidating Trustee satisfy the amounts Bronson and ELionheart owe in the following order: (i) penalties and postjudgment interest thereon that Bronson owes; (ii) penalties and postjudgment interest thereon that ELionheart owes; (iii) all disgorgement, prejudgment interest and postjudgment intere st thereon. The Liquidating Trustee shall contact counsel of record for the Commission for the amount of penalties and post judgment interest due and owing. The Liquidating Trustee will pay these penalties to the Securities and Exc hange Commission ("Commission") by any of the following means: Payment may be made electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions upon request. Payment may also be made direct ly from a bank account via Pay.gov through the SEC website at htts://www.sec.gov/paymentoptions. The Liquidating Trustee may also pay by certified check, bank cashier's check, or United States postal money order, made payable to the Sec urities and Exchange Commission and setting fort the title and civil action number of this action and the name of this Court; and specifying that payment is made pursuant to this Judgment. The funds may be hand-delivered or mailed to: Enterprise Services Center Accounts Receivable Branch HQ Bldg., Room 181, AMZ-341 6500 South MacArthur Boulevard Oklahoma City, OK 73169. All other provisions as further set forth in this order. So Ordered (Signed by Judge Kenneth M. Karas on 8/17/2021) (js)
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Filing
259
ORDER terminating 256 Letter Motion to Compel. Mr. Bronson's letter mischaracterizes the Court's ruling with regard to the July 7 hearing. The Court has NOT ruled that Mr. Bronson may not call any witnesses at the hearing, only that th ere will not be enough time to hear from these witnesses given the witnesses who already are scheduled to testify on July 7. That is why the Court indicated that it would take up the question of what additional witnesses would be testifying in this c ase. The Court knows full well that all parties are entitled to due process and it may be the case that the hearing will last multiple days. In the meantime, the Court reminds Mr. Bronson and his counsel of the obligation to follow the Court's orders, including those governing the production of certain materials. So Ordered. (Signed by Judge Kenneth M. Karas on 6/28/21) (yv)
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Filing
251
ORDER granting in part and denying in part 247 Letter Motion to Adjourn Conference. The request to adjourn, (Dkt. No. 247), is granted. In view of the number of witnesses scheduled to testify, the hearing will now take place on Wednesday, July 7, 2021 at 10:00 a.m. The Court anticipates completing the hearing in one day. However, the request to excuse Dr. and Ms. Krost, (id.), is denied. The Court will allow Ms. Krost to testify remotely via phone or video. Dr. Krost must make arrangements to appear and testify in person. SO ORDERED.( Status Conference set for 7/7/2021 at 10:00 AM before Judge Kenneth M. Karas.) (Signed by Judge Kenneth M. Karas on 5/28/21) (yv)
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Filing
245
ORDER, Pursuant to this Court's Order dated May 14, 2021, (Dkt. No. 241), and the SEC's subsequent request to call additional witnesses, (Dkt. No. 242), the Court hereby orders the following individuals to appear before this Court on Ju ne 3, 2021 at 1:30 p.m. for a hearing in the instant matter: John Kellas, Stuart Krost, Chelsea Krost, Allen Tucci. SO ORDERED. ( Status Conference set for 6/3/2021 at 01:30 PM before Judge Kenneth M. Karas.) (Signed by Judge Kenneth M. Karas on 5/25/21) (yv)
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Filing
241
ORDER: The Court will hold a hearing on June 3, 2021 at 1:30 P.M. to resolve the ongoing disputes regarding Edward Bronsons production of documents and the status of his compliance with the Courts January 19, 2021 Order. (Dkt. No. 223.) At a mini mum, Mr. Bronson and his wife, Dawn Bronson, should be prepared to testify under oath and respond to questions from the Court and the SEC. By no later than May 21, 2021, the SEC should notify the Court whether there are additional witnessessuch a s John Kellaswhom it wishes to question at the hearing, in which case the Court will order these additional witnesses to appear. Separately, the Court notes that although Mr. Bronson's counsel, Paul Rachmuth, provided approximately 200 docum ents to the Court for in camera review on May 1, 2021, Mr. Rachmuth failed to specify the basis for withholding each document as ordered by the Court on April 7, 2021. (Dkt. No. 238). Mr. Rachmuth is therefore instructed to provide the Court with supplemental documentation indicating the basis for withholding each document that was provided to the Court for in camera review. He should provide this supplemental documentation no later than May 21, 2021. Finally, Mr. Rachmuth is instructed to respond to the SEC's May 11, 2021 letter, (Dkt. No. 240), no later than May 21, 2021. In particular, Mr. Rachmuth should address the troubling allegation that Mr. Bronson is using Mr. Kellas as a nominee to control the Top Knot entities, an d is now "using Top Knot to fund [his] family expenses in much the way [he] used V2IP." (Id.) Mr. Rachmuth should also address the SEC's proposed payment plan. (See id.) SO ORDERED., Status Conference set for 6/3/2021 at 01:30 PM before Judge Kenneth M. Karas. (Signed by Judge Kenneth M. Karas on 5/14/2021) (rj)
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Filing
238
ORDER granting 229 Letter Motion for Discovery. Granted. For each category of documents requested in Dkt. Nos 229-1, 229-2, and 229-3, counsel for Defendant is instructed to provide a complete accounting of which documents have and have not bee n produced. For documents that have not been produced, counsel is instructed to state the basis on which the document(s) are being withheld and provide those documents to the Court under seal for in camera review. Finally, counsel is also instructe d to provide a complete accounting of all assets and income with documentary support for each calculation. All of this is to be provided to the Court no later than Friday, April 30, 2021. The Clerk of Court is respectfully directed to terminate the pending letter motion, (Dkt. No. 229). So Ordered. (Signed by Judge Kenneth M. Karas on 4/7/21) (yv)
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Filing
230
ORDER with respect to 229 LETTER MOTION for Discovery Sanctions for Contempt Order Violation. Mr. Bronson is to respond to this letter by 2/10/21. So Ordered. (Signed by Judge Kenneth M. Karas on 2/5/2021) (jca)
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Filing
215
CALENDAR NOTICE: Judge Kenneth M. Karas has directed that counsel for all parties herein shall appear on Friday, May 8, 2020 at 11:00 a.m. for a status conference to be held by telephone. All parties participating in the conference shall call the following number at the designated time: Meeting Dial-In Number (USA toll-free): (888) 363-4749 Access Code: 7702195 Please enter the conference as a guest by pressing the pound sign(#). Any requests for adjournments should be filed as soon as possible and clearly explain why the conference should be adjourned. SO ORDERED. (Telephone Conference set for 5/8/2020 at 11:00 AM before Judge Kenneth M. Karas.) (Signed by Judge Kenneth M. Karas on 5/5/2020) (jca)
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Filing
213
NOTICE OF TELECONFERENCE INFORMATION: For the week of May 4, 2020, the Court will hold all civil conferences, hearings, and/or oral arguments by telephone. Counsel shall call the following number at the designated time: Meeting Dial-In Number (US A toll-free): (888) 363-4749 Access Code: 7702195 Please enter the conference as a guest by pressing the pound sign (#). Given that much of the Court is operating remotely and has limited mail capability, counsel involved in any pro se cases shall m ail a copy of this Notice to or otherwise inform the pro se party of the above teleconference information. Counsel in any pro se inmate cases shall ensure that the pro se party is on the line before calling the above-referenced number. For initial conferences, counsel shall submit a proposed case management and discovery schedule via ECF by 5 p.m. on the evening before the initial conference. Any requests for adjournments should be filed as soon as possible and clearly explain why the conference should be adjourned. SO ORDERED. (Signed by Judge Kenneth M. Karas on 4/29/2020) (jca)
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Filing
178
OPINION & ORDER re: 146 MOTION for Summary Judgment , filed by Securities and Exchange Commission. The Court grants the SEC's Motion for Summary Judgment. Accordingly, Defendants are hereby enjoined from committing further viola tions of § 5 of the Securities Exchange Act of 1933 and are barred from trading in penny stocks. Defendants are hereby ordered to provide the SEC with a calculation of their transaction expenses for the purpose of calculating the disgorgement figure within seven days of the date of this Opinion & Order. The SEC is to submit a revised prejudgment interest calculation based on the revised disgorgement amount, and a proposed final judgment within seven days thereafter. The Clerk of Court is respectfully directed to terminate the pending Motion. (Dkt. No. 146.) SO ORDERED. (Signed by Judge Kenneth M. Karas on 3/27/17) (yv)
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Filing
120
MEMORANDUM AND OPINION:For the foregoing reasons, Plaintiff SECs motion for reconsideration is granted in part and denied in part. The Court modifies its Order, (Docket No. 98), and amends the protective order, issued pursuant to Rule 26, in accordance with this Opinion and Order. The Clerk is respectfully requested to terminate the pending motion (Docket No. 105). (Signed by Judge Kenneth M. Karas on 1023/2015) (rj)
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Filing
21
OPINION AND ORDER: Defendants' Motion To Dismiss is denied. The Clerk of Court is respectfully directed to terminate the pending motion. (Dkt. No. 17.) SO ORDERED. (Signed by Judge Kenneth M. Karas on 3/31/2014) (lnl)
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