 |
 |
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1
.
SEC LITIGATION RELEASE
|
EXTRACTED KEY WORDS
KANE COMMISSION BANKRUPTCY COURT DEBT DISCHARGE SECURITIES DISTRICT EXCHANGE COMMISSION DISGORGEMENT PREJUDGMENT FRAUD FINDINGS LITIGATION WILLIAM MASSACHUSETTS PROCEEDING JUDGEMENT AROSE ADMISSIONS BANKRUPTCY CODE EXCEPTS RELITIGATING SUBSEQUENT CRIMINAL PROCEEDING MEANING SECOND BASIS CLAIMING MISUSE FIDUCIARIES PRIOR LITIGATION |
SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE No. 15443 / August 15, 1997
SECURITIES AND EXCHANGE COMMISSION v. WILLIAM F. KANE (IN RE KANE),
(United
States Bankruptcy Court for the District of Massachusetts, Adversary
Proceeding No. 96-4425-JFQ).
The Securities and Exchange Commission ("Commission") announced
that
on, August 11, 1997, in bankruptcy court, it was granted summary
judgment
determining that the disgorgement and prejudgment interest debt owed to
the
Commission by William F. Kane ("Kane") is not dischargeable in
bankruptcy
because it arose out of fraud. On April 5, 1994, the Commission filed
a
civil enforcement action in federal district court. On June 6, 1996,
the
Commission obtained a final judgment finding that Kane had violated
the
general antifraud provisions of the federal securities laws and
ordering
Kane to pay $122,670 in disgorgement plus prejudgment interest. Kane
then
filed for bankruptcy, seeking to have his debt for disgorgement and
prejudgment interest discharged.
The U.S. Bankruptcy Court for the District of Massachusetts,
agreed
with the Commission's arguments that Kane was precluded from
relitigating
the district court's findings and that Kane also was bound by certain
admissions he made in a subsequent criminal proceeding against him.
The
bankruptcy court further held that those findings and admissions,
taken
together, were sufficient to establish all the elements of "fraud"
within
the meaning of Section 523(a)(2)(A) of the Bankruptcy Code, which
SNIPPETS:
|
|
|
| | | |
|
|
