Post by Sapphire Capital on Aug 1, 2008 21:04:57 GMT 4
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20667 / August 1, 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 ("Commission") announced that on July 25, 2008, the Honorable George Lindberg, United States District Court, Northern District of Illinois, entered an Agreed Order Making Findings of Contempt of the Court's April 18, 2008 Asset Freeze Order by Jason R. Hyatt and Heidi E. Hyatt (the "Contempt Order"). The Contempt Order found that Jason Hyatt, a resident of St. Charles, Illinois, and Heidi Hyatt, Jason Hyatt's spouse and also a resident of St. Charles, Illinois, were in contempt of an order (the "Asset Freeze Order"). The Asset Freeze Order entered by the Honorable William Hibbler acting as emergency judge froze all of the assets of Jason Hyatt.
Previously, on April 18, 2008, the Commission 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. 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. A part of the action, the Commission also sought and obtained various emergency remedies, including the entry of the Asset Freeze Order freezing all of Jason Hyatt's assets.
On April 19, 2008, the Commission filed a Motion to Show Cause (the "Contempt Motion") against Jason Hyatt and Heidi Hyatt alleging that they acted in contempt of the Court's April 18, 2008 Asset Freeze Order. The Commission's Contempt Motion alleged that, after Jason Hyatt received notice of the Asset Freeze Order, Heidi Hyatt withdrew at least $57,000 in cash from Jason Hyatt's bank account in three separate visits to two different branches of a bank over an approximately one-hour period. The Commission stated in a pre-hearing status report in connection with the Contempt Motion that thirteen telephone calls took place between Jason Hyatt and Heidi Hyatt shortly after Jason Hyatt learned of the Asset Freeze Order. While the Contempt Motion was pending, the Court ordered Jason Hyatt to return substantially all of the cash to his bank account.
The Commission also announced that on June 12, 2008, the Special June 2007 Grand Jury for the Northern District of Illinois returned an eleven-count indictment for Jason Hyatt. U.S. v. Jason R. Hyatt, Criminal Action No. 1:08-cr-0469 (N.D. Ill.) (Kocoras, J.). This indictment included various counts of wire fraud (18 USC 1343), bank fraud (18 USC 1014), engaging in monetary transactions in property derived from specified unlawful activity (18 USC 1957(a)), filing a false income tax return (26 USC 7206(1)), willful failure to file a tax return (26 USC 7203), and tax evasion (26 USC 7201).
Litigation Release No. 20667 / August 1, 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 ("Commission") announced that on July 25, 2008, the Honorable George Lindberg, United States District Court, Northern District of Illinois, entered an Agreed Order Making Findings of Contempt of the Court's April 18, 2008 Asset Freeze Order by Jason R. Hyatt and Heidi E. Hyatt (the "Contempt Order"). The Contempt Order found that Jason Hyatt, a resident of St. Charles, Illinois, and Heidi Hyatt, Jason Hyatt's spouse and also a resident of St. Charles, Illinois, were in contempt of an order (the "Asset Freeze Order"). The Asset Freeze Order entered by the Honorable William Hibbler acting as emergency judge froze all of the assets of Jason Hyatt.
Previously, on April 18, 2008, the Commission 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. 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. A part of the action, the Commission also sought and obtained various emergency remedies, including the entry of the Asset Freeze Order freezing all of Jason Hyatt's assets.
On April 19, 2008, the Commission filed a Motion to Show Cause (the "Contempt Motion") against Jason Hyatt and Heidi Hyatt alleging that they acted in contempt of the Court's April 18, 2008 Asset Freeze Order. The Commission's Contempt Motion alleged that, after Jason Hyatt received notice of the Asset Freeze Order, Heidi Hyatt withdrew at least $57,000 in cash from Jason Hyatt's bank account in three separate visits to two different branches of a bank over an approximately one-hour period. The Commission stated in a pre-hearing status report in connection with the Contempt Motion that thirteen telephone calls took place between Jason Hyatt and Heidi Hyatt shortly after Jason Hyatt learned of the Asset Freeze Order. While the Contempt Motion was pending, the Court ordered Jason Hyatt to return substantially all of the cash to his bank account.
The Commission also announced that on June 12, 2008, the Special June 2007 Grand Jury for the Northern District of Illinois returned an eleven-count indictment for Jason Hyatt. U.S. v. Jason R. Hyatt, Criminal Action No. 1:08-cr-0469 (N.D. Ill.) (Kocoras, J.). This indictment included various counts of wire fraud (18 USC 1343), bank fraud (18 USC 1014), engaging in monetary transactions in property derived from specified unlawful activity (18 USC 1957(a)), filing a false income tax return (26 USC 7206(1)), willful failure to file a tax return (26 USC 7203), and tax evasion (26 USC 7201).