SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17748 / September 26, 2002
SEC FILES THIRD CONTEMPT MOTION AGAINST ROC HATFIELD
SECURITIES AND EXCHANGE COMMISSION V. MARADA GLOBAL CORPORATION, et al.,
Case No. 94-CV-1504 (M.D. Fla).
The Securities and Exchange Commission (SEC) announced that on April
18, 2002, it filed with the United States District Court for the
Middle District of Florida, an Application for an Order to Show Cause
why Roc Hatfield should not be held in civil contempt for failing to
comply with the Court's Order of March 26, 2002. That order, among
other things, froze the assets of Hatfield and Global Diamond Fund,
Inc. (GDF). The Application alleged that Hatfield, in direct
contravention of a March 26, 2002 Order, transferred assets of GDF to
an investor in GDF.
On March 26, 2002, the SEC filed its first motion for contempt and for
other emergency relief against Hatfield and GDF for violating the
Final Judgment of Permanent Injunction and Other Relief entered on
September 8, 1995, in , Case No. 94-CV-1504-CIV-T-26MAP (M.D. Fla.).
The Marada final judgment prohibited Hatfield from violating the penny
stock, registration and antifraud provisions of the federal securities
laws in the future.
The SEC alleged that from at least September 2001 through the filing
of the first contempt motion, Hatfield and GDF (a private Florida
corporation founded and operated by Hatfield in St. Petersburg,
Florida) violated Sections 5(c) and 17(a) of the Securities Act of
1933 and the Marada final judgment by fraudulently offering
unregistered securities in the form of nine-month 24% APR high yield
secured notes. On April 25, 2002, the SEC amended its motion to also
allege that Hatfield and GDF were in contempt of the Marada final
judgment by violating Section 5(a) of the Securities Act and Section
10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder.
On March 26, 2002, the Court entered an order freezing Hatfield and
GDF's assets. Hatfield, in direct contravention of the Order,
transferred assets (diamonds) of GDF to an investor in GDF.
On April 26, 2002, the Court held a hearing to decide the SEC's
request for an order holding Hatfield in civil contempt and other
relief. The Court made findings of fact and conclusions of law on the
record during the contempt hearing. Those findings were adopted and
incorporated in a May 6, 2002 Order. The Court found that Hatfield and
SNIPPETS:
SEC FILES THIRD CONTEMPT MOTION AGAINST ROC HATFIELD
SECURITIES AND EXCHANGE COMMISSION V. MARADA GLOBAL CORPORATION, et al., Case No. 94-CV-1504
The Securities and Exchange Commission announced that on April 18, 2002, it filed with the
The Application alleged that Hatfield, in direct contravention of a March 26, 2002 Order,
On March 26, 2002, the SEC filed its first motion for contempt and for other emergency relief
The Marada final judgment prohibited Hatfield from violating the penny stock, registration
The SEC alleged that from at least September 2001 through the filing of the first contempt
On April 25, 2002, the SEC amended its motion to also allege that Hatfield and GDF were in
On March 26, 2002, the Court entered an order freezing Hatfield and GDF's assets.
On April 26, 2002, the Court held a hearing to decide the SEC's request for an order holding
The Court made findings of fact and conclusions of law on the record during the contempt
The Court found that Hatfield and GDF were in contempt and ordered the investor to turn over
the investor would have three business days to elect to keep the diamonds or request
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