U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22952 / March 26, 2014
Securities and Exchange Commission v. Walter Gerasimowicz, Meditron Asset Management, LLC, and Meditron Management Group, LLC, Civil Action No. 14-MC-30 (S.D.N.Y.)
SEC Obtains Order Enforcing Compliance with Order to Pay Over $5 Million in Disgorgement, Prejudgment Interest, and Civil Penalties
The Securities and Exchange Commission announced today that on March 25, 2014 Judge Koeltl of the U.S. District Court for the Southern District of New York entered an opinion and order directing Walter Gerasimowicz, Meditron Asset Management, LLC, and Meditron Management Group, LLC (the "Respondents") to comply with the SEC order requiring them to pay $3,143,029.41 in disgorgement and prejudgment interest, and a civil penalty of $1,950,000.
The SEC on May 3, 2013 entered an Order Making Findings and Imposing Remedial Sanctions and a Cease-and-Desist Order (the "Consent Order") against the Respondents. The Consent Order found that the Respondents had willfully violated the antifraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940.
On July 12, 2013, an Administrative Law Judge with the SEC entered an Initial Decision finding the Respondents jointly and severally liable for disgorgement, prejudgment interest, and a civil penalty. The Respondents did not seek review of the Initial Decision, and the SEC entered a Finality Order on September 17, 2013. The Respondents did not seek judicial review of the Finality Order.
The SEC brought a summary proceeding in district court to obtain an order enforcing the Finality Order. Judge Koeltl issued the order, holding that the Respondents could not challenge the merits of the SEC orders in a proceeding under Section 20(c) of the Securities Act and 21(e)(1) of the Exchange Act, as judicial review of SEC orders may only be sought from the Courts of Appeals.For further information, see Securities Act Rel. No. 9041, Initial Decision Rel. No. 496, and Securities Act Rel. No. 9415.