Post by Sapphire Capital on Sept 5, 2008 21:26:53 GMT 4
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20701 / September 4, 2008
SEC v. Jason R. Hyatt, Jay Johnson and Hyatt Johnson Capital, LLC, Civil Action No. 1:08-cv-2224 (N.D. Ill.) (Lindberg, J.)
The Securities and Exchange Commission ("SEC") announced that on September 3, 2008, the Honorable George W. Lindberg of the United States District Court for the Northern District of Illinois entered an Order Making Findings of Contempt ("the contempt order") by BCI Aircraft Leasing, Inc. ("BCI") and Brian Hollnagel ("Hollnagel") for their failure to properly respond to subpoenas issued by the SEC. On August 28, 2008, the SEC filed a Motion to Show Cause, alleging that BCI failed to provide responsive documents in a timely manner, and that Hollnagel had falsely claimed to not have any responsive documents in his possession or control. As part of the contempt order, the Court ordered that BCI and Hollnagel fully respond to the SEC's subpoenas by noon on Friday, September 5, 2008, and that BCI and Hollnagel would each be fined $1,000 per day afterwards if they do not fully respond by that time. The Court also ordered that BCI and Hollnagel pay costs and reasonable attorney fees incurred by the SEC in its repeated attempts to obtain documents responsive to the subpoenas.
On April 18, 2008, the SEC filed a civil injunctive complaint alleging that Defendants Jason Hyatt, Jay Johnson, and Hyatt Johnson Capital, LLC, from approximately 2003 through 2007, while acting as unregistered broker-dealers and investment advisers, misappropriated at least $5.4 million in investor funds purportedly raised to invest in securities offered by BCI. The complaint also alleged that the Defendants made certain false assurances to investors regarding the legitimacy of the BCI securities, without having any reasonable basis for such assurances. The complaint alleged that, as a result of their conduct, the Defendants violated Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder.
Previously, on August 13, 2007, the SEC filed a civil injunctive complaint alleging that Hollnagel and BCI, from 1999 through 2006, raised at least $82 million from approximately 120 investors through the fraudulent offer and sale of securities issued by BCI. SEC v. Brian N. Hollnagel and BCI Aircraft Leasing, Inc., Civil Action No. 07 C 4538 (N.D. Ill.) (Bucklo, J.). The SEC's complaint alleges that, as a result of their conduct, Hollnagel and BCI violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Litigation Release No. 20701 / September 4, 2008
SEC v. Jason R. Hyatt, Jay Johnson and Hyatt Johnson Capital, LLC, Civil Action No. 1:08-cv-2224 (N.D. Ill.) (Lindberg, J.)
The Securities and Exchange Commission ("SEC") announced that on September 3, 2008, the Honorable George W. Lindberg of the United States District Court for the Northern District of Illinois entered an Order Making Findings of Contempt ("the contempt order") by BCI Aircraft Leasing, Inc. ("BCI") and Brian Hollnagel ("Hollnagel") for their failure to properly respond to subpoenas issued by the SEC. On August 28, 2008, the SEC filed a Motion to Show Cause, alleging that BCI failed to provide responsive documents in a timely manner, and that Hollnagel had falsely claimed to not have any responsive documents in his possession or control. As part of the contempt order, the Court ordered that BCI and Hollnagel fully respond to the SEC's subpoenas by noon on Friday, September 5, 2008, and that BCI and Hollnagel would each be fined $1,000 per day afterwards if they do not fully respond by that time. The Court also ordered that BCI and Hollnagel pay costs and reasonable attorney fees incurred by the SEC in its repeated attempts to obtain documents responsive to the subpoenas.
On April 18, 2008, the SEC filed a civil injunctive complaint alleging that Defendants Jason Hyatt, Jay Johnson, and Hyatt Johnson Capital, LLC, from approximately 2003 through 2007, while acting as unregistered broker-dealers and investment advisers, misappropriated at least $5.4 million in investor funds purportedly raised to invest in securities offered by BCI. The complaint also alleged that the Defendants made certain false assurances to investors regarding the legitimacy of the BCI securities, without having any reasonable basis for such assurances. The complaint alleged that, as a result of their conduct, the Defendants violated Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder.
Previously, on August 13, 2007, the SEC filed a civil injunctive complaint alleging that Hollnagel and BCI, from 1999 through 2006, raised at least $82 million from approximately 120 investors through the fraudulent offer and sale of securities issued by BCI. SEC v. Brian N. Hollnagel and BCI Aircraft Leasing, Inc., Civil Action No. 07 C 4538 (N.D. Ill.) (Bucklo, J.). The SEC's complaint alleges that, as a result of their conduct, Hollnagel and BCI violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.