U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22920 / February 6, 2014
Securities and Exchange Commission v. Edward M. Daspin, a/k/a “Edward Michael,” a/k/a “Ed Michael,”, Civil Action No. 13-4622 (2d Cir.); 13 Misc. 389 (RMB) (S.D.N.Y)
Court of Appeals Denies Stay of Order Compelling Investigative Testimony; Affirms District Court's Exercise of Discretion
On February 5, 2014, the United States Court of Appeals for the Second Circuit (Cabranes, J.; Carney, J.; Droney, J.) issued a summary order denying Edward Daspin’s motion for a stay of a December 5, 2013 order of the Hon. Richard Berman of the U.S. District Court for the Southern District of New York and affirming Judge Berman’s order: (1) requiring Daspin to appear for investigative testimony in compliance with an SEC investigative subpoena; and (2) denying Daspin’s request that the SEC be required to pay for Daspin’s physician to attend the testimony. The Court of Appeals held that Daspin could not show that he was likely to succeed on the merits of his appeal in light of the conditions Judge Berman had ordered to address his claim that having to testify posed a threat to his health and had failed to show that he would suffer irreparable harm from appearing for the testimony under those conditions. Noting that Daspin’s appeal will be mooted by his appearance for testimony, and that the court already had the information necessary to decide the appeal, the court also affirmed Judge Berman’s order, ruling that Daspin had failed to show that the order was a clear abuse of the district court’s discretion.
For further information, please see Litigation Release Nos. 22884 (Dec. 4, 2013) and 22871 (Nov. 18, 2013).