United States Securities and Exchange Commission
Washington, D.C.
Litigation Release No. 17798 / October 23, 2002
, 00-9109-CIV-HURLEY/LYNCH (S.D. Fla. filed Dec. 20, 2000)
District Court Enters Final Judgment Ordering Keith Greenberg to Pay
Disgorgement and Interest of $5.8 Million
Amount Is in Addition to Civil Money Penalty of $100,000
The Securities and Exchange Commission ("Commission") announced today
that on October 4, 2002, the Honorable Daniel T.K. Hurley, United
States District Judge for the Southern District of Florida, entered a
final judgment imposing, jointly and severally, disgorgement of
$3,828,000, together with prejudgment interest thereon of $1,987,346,
against Keith Greenberg ("Greenberg") and Coyote Consulting and
Financial Services, LLP ("Coyote"). The disgorgement amount was based
on fees received for Coyote acting, through Greenberg, as a broker
although not registered as such with the Commission. The Court also
imposed a civil money penalty of $100,000 against Greenberg and a
civil money penalty of $500,000 against Coyote.
Greenberg was a co-founder of U.S. Diagnostic, Inc. ("USDL"), a
company that operates outpatient diagnostic imaging centers and has
its headquarters in West Palm Beach, Florida. In a complaint filed in
December 2000, the Commission alleged that Greenberg prepared or
directed the preparation of numerous public statements by USDL which
identified him as an officer of the company, but which fraudulently
failed to disclose his criminal conviction and his injunction in
previous litigation with the Commission. The Commission's complaint
additionally alleged that Coyote, through Greenberg, acted as a broker
without registering with the Commission. Coyote is a Florida limited
liability company owned by a Greenberg family trust and Greenberg's
wife, and controlled by Greenberg.
On March 11, 2002, the Commission filed a motion requesting a default
judgment against Greenberg and Coyote and requesting the imposition of
disgorgement and civil penalties against the defendants. On April 4,
2002, the U.S. District Court for the Southern District of Florida
entered a final judgment of permanent injunction by default against
Greenberg and Coyote permanently enjoining Greenberg from violating
Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)
of the Securities Exchange Act of 1934 ("Exchange Act"), and Exchange
Act Rule 10b-5, and from aiding and abetting violations of Section
13(a) of the Exchange Act and Exchange Act Rules 12b-20, 13a-1, and
13a-13 and permanently enjoining Coyote from violating Section 15(a)
SNIPPETS:
United States Securities and Exchange Commission
District Court Enters Final Judgment Ordering Keith Greenberg to Pay Disgorgement and
The Securities and Exchange Commission announced today that on October 4, 2002, the Honorable
The disgorgement amount was based on fees received for Coyote acting, through Greenberg, as a
The Court also imposed a civil money penalty of $100,000 against Greenberg and a civil money
In a complaint filed in December 2000, the Commission alleged that Greenberg prepared or
The Commission's complaint additionally alleged that Coyote, through Greenberg, acted as a
On March 11, 2002, the Commission filed a motion requesting a default judgment against
On April 4, 2002, the U.S. District Court for the Southern District of Florida entered a
ote from violating Section 15of the Exchange Act.
On June 4, 2002, the Court ordered an evidentiary hearing to determine the appropriate
U.S. District Judge Hurley adopted the recommending report in its entirety.
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