U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21743 / November 15, 2010
DISGORGEMENT AND CIVIL PENALTIES ORDERED AGAINST DEFENDANTS WINNING KIDS, INC. AND CHRISTIAN HAINSWORTH
Securities and Exchange Commission v. Winning Kids, Inc., et al., Civil Action No. 10-CV-80186-MARRA/JOHNSON (S.D. Fla.)
The Commission announced that on November 5, 2010, the Honorable Kenneth A. Marra, United States District Court Judge for the Southern District of Florida, ordered disgorgement and civil penalties against Defendants Winning Kids, Inc. and its founder and CEO, Christian Hainsworth for their alleged offering scheme in violation of the federal securities laws. Winning Kids is ordered to pay disgorgement of $1,044,504.66, prejudgment interest of $94,956.95 and a civil penalty of $1,044,504.66. Hainsworth is ordered to pay disgorgement of $541,356.70, prejudgment interest of $49,215.21 and a civil penalty of $541,356.70.
Previously, on February 1, 2010, the Court entered judgments of permanent injunction against Winning Kids and Hainsworth enjoining them from further violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 (Exchange Act) and enjoining Hainsworth from aiding and abetting violations of Section 15(a) of the Exchange Act. Winning Kids and Hainsworth consented to the entry of the judgments without admitting or denying the allegations in the complaint.
For more information on earlier actions in this case, see LR-21400 (Feb. 2, 2010), LR-21589 (July 8, 2010), LR-21707 (Oct. 22, 2010).