U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21046 / May 19, 2009
Securities and Exchange Commission v. Michael Lauer, et al., Civil Action No. 03-80612-CV-MARRA (S.D. Fla.)
Court Orders Disgorgement And Prejudgment Interest Against Defendant Michael Lauer
The Securities and Exchange Commission announced that on May 7, 2008, the United States District Court for the Southern District of Florida entered an order setting the disgorgement and prejudgment interest amounts against Defendant Michael Lauer. After an evidentiary hearing on December 12, 2008, the Court ordered Lauer to disgorge all money he ultimately received, based on the fraudulent conduct he demonstrated in his hedge fund scheme. Specifically, the Court noted, to "hold otherwise would permit Defendant to profit from his wrongful conduct". [DE 2260 at p. 2] Accordingly, the Court ordered Lauer to pay $43,688,249.00 in disgorgement and $18,908,558.74 in prejudgment interest, for a total of $62,596,807.74. The Court also gave the Commission 30 days to recommend a specific civil money penalty.
Previously, on September 23, 2008, the Court granted the Commission's motion for summary judgment against Lauer which permanently enjoined him from further violations of Sections 17(a)(1), (2) and (3) of the Securities Act of 1933; Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 (Exchange Act), both individually and as a control person pursuant to Section 20(a) of the Exchange Act; and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.
For more information on earlier actions in this case, see LR-18226 (July 10, 2003), LR- 18247 (July 23, 2003), LR-18991 (December 2, 2004), LR-19018 (December 30, 2004) and LR- 19019 (December 30, 2004); LR-19042 (January 21, 2005), LR-19186 (April 15, 2005); LR- 19590 (March 6, 2006); LR-19661 (April 18, 2006); LR-20505 (March 21, 2008); and LR-20751 (Sept. 29, 2008).