U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19139 / March 16, 2005
Securities and Exchange Commission v. Cary R. Kahn, Civ. Action No. 04-Z-2692 (D.Colo)
The Commission announced that on March 11, 2005 the United States District Court for the District of Colorado entered a Default Judgment against Defendant Cary R. Kahn.
On December 30, 2004, the Securities and Exchange Commission filed a complaint in federal district court to collect disgorgement plus prejudgment interest from Cary R. Kahn.The complaint charged that Kahn failed to comply with the terms of a prior Commission order imposing remedial sanctions by default which was issued on July 20, 2004, In the Matter of Cary R. Kahn (Administrative Proceeding File No. 3-11468). In the administrative proceeding, the Division of Enforcement charged that Kahn engaged in a fraudulent scheme, known as "spoofing."
The complaint, filed pursuant to Section 20(c) of the Securities Act of 1933 and Section 21(e) of the Securities Exchange Act of 1934, asked the federal court to order Kahn to comply with the Commission's previous Order.
Kahn has been ordered to pay disgorgement of $12,186.21 and prejudgment interest in the amount of $1,217.54 for a total of $13,403.75.