U.S. Securities and Exchange Commission
Litigation Release No. 18662 / April 7, 2004
SEC v. CDH & Affiliates, Inc. and C. David Hallman, Civil Action Number 3:02-CV-017-JTC (N.D. Ga.)
FINAL JUDGMENT OF PERMANENT INJUNCTION ENTERED AGAINST CDH & AFFILIATES, INC. AND C. DAVID HALLMAN
The Securities and Exchange Commission announced that on April 1, 2004, the Honorable Jack T. Camp, United States District Judge for the Northern District of Georgia entered a Final Judgment Of Permanent Injunction against CDH & Affiliates, Inc. and C. David Hallman. The Final Judgment orders CDH and Hallman, jointly and severally, to pay disgorgement in the amount of $3,128,000 plus prejudgment interest of $1,079,616.95 for a total of $4,207,616.95. The Court also ordered that CDH and Hallman, each, pay a civil penalty of $110,000.
On October 23, 2003, the Court granted the Commission's motion for summary judgment against Hallman and CDH and permanently enjoined CDH & Affiliates, Inc. and C. David Hallman from future violations of Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Court found that Hallman made numerous misrepresentations to CDH's customers, including false claims that he had sold bonds for some issuers, that bond sales were imminent and that the high yield investment programs he described to investors would generate large returns when, in fact, those programs did not exist. The Court also found that Hallman and CDH operated as unregistered brokers while selling this investment scheme to CDH's customers.See also, Litigation Releases No. 18431 (October 29, 2003), and No. 17386 (February 27, 2002).