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1
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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMMISSION JUDGE ALBA DEFENDANT COURT STOCK VIOLATION ASSET FREEZE SALES UNITED STATES SECURITIES LITIGATION CIVIL CONTEMPT PAY PROCEEDS REGISTRY CONTROLS SCHEMES RELIEF DEFENDANT ACCOUNT BAHAMAS TRUST REGISTERED BROKER-DEALER CONSENT PONZI SCHEMES INVESTORS FEDERAL SECURITIES LAWS ORDER REQUIRING MANN DISGORGE ILL-GOTTEN GAINS PAY CIVIL PENALTIES |
United States Securities and Exchange Commission
Litigation Release No. 16400 / January 5, 2000
, Civil Action No. 2 97-0977S (D. Utah)
On January 4, 2000, United States Magistrate Judge Samuel Alba found
defendant Clealon Mann in contempt of court for selling stock in
violation of a court order freezing his assets. Judge Alba fined Mann
$2,500 and ordered him to pay the Commission's attorney fees in
connection with the motion for contempt. Judge Alba also ruled that
the proceeds of the stock sales be retained in the registry of the
court pending final determination of the Commission's complaint.
Mann violated the asset freeze by ordering sales of stock owned by
Genie Total Products, Inc., a corporation that Mann controls and that
is also a relief defendant in this case. Mann ordered the sales, which
resulted in approximately $100,000 in total proceeds, through the
account of a Bahamas trust that he controls at a registered
broker-dealer.
The Commission obtained the asset freeze as part of a preliminary
injunction entered with Mann's consent on January 13, 1998. The
Commission has charged that Mann, along with other defendants,
directed two Ponzi schemes that raised over $30 million from investors
in violation of the federal securities laws. Among other things, the
Commission seeks an order requiring Mann to disgorge ill-gotten gains
that he received from the schemes and to pay civil penalties.
For further information on this case, see Litigation releases , , , ,
and .
_________________________________________________________________
Modified 01/10/2000
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