U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21296 / November 16, 2009
COURT ENTERS JUDGMENT OF PERMANENT INJUNCTION BY DEFAULT AGAINST GMC HOLDING CORPORATION AND ORDERS THE COMPANY AND ITS CHIEF EXECUTIVE, RICHARD BRACE TO PAY DISGORGEMENT
Securities and Exchange Commission v. GMC Holding Corporation and Richard Brace, Case No. 6:08-CV-00275-GKS-KRS (M.D. Fla.)
The Securities and Exchange Commission announced that on February 27, 2009, the United States District Court for the Middle District of Florida entered an Order granting the Commission's Motion for Default Judgment against Defendant GMC Holding Corporation. The Judgment enjoins the company from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. It also orders GMC to pay disgorgement in the amount of $2,090,000.00 with prejudgment interest in the amount of $111,983.73, and a civil penalty in an amount to be determined by the Court upon motion by the Commission. On May 21, 2009, the Commission filed a Notice of Voluntary Dismissal as to the civil penalty claim against GMC, which the Court dismissed on June 4, 2009.
On June 10, 2009, the Court also entered a Final Judgment of Disgorgement and Civil Penalty as to Defendant Richard Brace. The Final Judgment, entered by consent, orders Brace to pay disgorgement in the amount of $214,000 with prejudgment interest of $14,090.49 and imposes a civil penalty of $130,000.