U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19186 / April 15, 2005
SECURITIES AND EXCHANGE COMMISSION V. MICHAEL LAUER, ET AL., Case No. 03-80612-CIV-MARRA/VITUNAC (S.D. Fla).
RECOMMENDATION BY CHIEF UNITED STATES MAGISTRATE JUDGE TO HOLD MICHAEL LAUER IN CONTEMPT FOR FAILING TO TAKE PART IN THE DISCOVERY PROCESS AND REPEATEDLY VIOLATING COURT ORDERS
The Securities and Exchange Commission announced that on March 23, 2005, Chief United States Magistrate Judge Ann E. Vitunac recommended to the District Court Judge that Defendant Michael Lauer be held in contempt for acting in bad faith, failing to take part in the discovery process and repeatedly violating Court Orders.
Pending before the Court are the Commission's contempt applications, alleging that: (1) Lauer violated the Court's Order freezing Lauer's assets; (2) Lauer violated the Court's Order requiring him to respond to Plaintiff's First Set of Interrogatories; (3) Lauer violated the Court's Order by failing to provide an Initial Disclosure Statement as required pursuant to Rule 26 of the Federal Rules of Civil Procedure; and (4) Lauer violated the Court's Orders to appear for his duly noticed deposition.
If the District Court holds Lauer in contempt, Chief Judge Vitunac recommended that the following sanctions be imposed: (1) incarcerate him until he complies with all outstanding court orders; (2) require him to pay a daily fine of $1,000 until he complies with all outstanding court orders; and (3) require him to reimburse the Commission for attorneys' fees, costs, and expenses incurred in seeking the contempt proceedings. Lauer may serve and file written objections to Chief Judge Vitunac's March 23, 2005 recommendation within ten days.
A copy of the Magistrate's Report and Recommendation (PFD format, 5.83 MB) may be found at the Commission's website. For further information, see Litigation Release No. 18226 (July 10, 2003), Litigation Release No. 18247 (July 23, 2003), Litigation Release No. 18991 (December 2, 2004), Litigation Release No. 19018 (December 30, 2004) and Litigation Release No. 19019 (December 30, 2004).