U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22068 / August 16, 2011
FEDERAL COURT GRANTS SUMMARY JUDGMENT AND ENTERS PERMANENT INJUNCTION AGAINST LARRY LANGFORD
Securities and Exchange Commission v. Larry Langford, et al., Civil Action No. 2:08-CV-00761-AKK (N.D. AL)
The Securities and Exchange Commission announced that a District Judge has granted summary judgment in favor of the Commission on its claims that the former president of the Jefferson County, Alabama Commission violated the securities laws when he accepted payments from a broker-dealer in connection with the award of County bond and swap business. On August 8, 2011, the Honorable Abdul K. Kallon, United States District Judge for the Northern District of Alabama, granted the Commission's motion for summary judgment against Larry Langford based on Langford's criminal conviction for the same conduct. The Eleventh Circuit Court of Appeals on August 5, 2011, affirmed Langford's conviction and 15-year prison sentence.
The Court permanently enjoined Langford, the former County Commission president and former mayor of Birmingham, Alabama, from further violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5. The Court found that Langford had engaged in a scheme to enrich himself by accepting payments from Montgomery-based broker William Blount in exchange for awarding Blount's firm, business on numerous county bond and swap transactions. The Court gave the Commission until September 29, 2011, to file a motion regarding any disgorgement and civil penalties it intends to seek.
The Court found Langford's conduct egregious and if he was given the opportunity would likely repeat the wrongs. The Court concluded Langford's conduct revealed a recurrent pattern of wrongful behavior that has affected Jefferson County citizens and its bond investors continue to suffer.
For further information, see LR-20545 (April 30, 2008); LR-20821 (Dec. 5, 2008), and LR-21595 (July 20, 2010).