U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19753 / July 5, 2006
Focus Financial Associates, Inc., et al., Case No. 05-21527-CIV-MOORE (S.D. Fla.)
Court Enters Default Judgment of Permanent Injunction and Other Relief Against Defendants Focus Financial Associates, Inc. and Focus Development Center, Inc.
The Securities and Exchange Commission announced that on February 1, 2006, the Honorable K. Michael Moore, United States District Judge for the Southern District of Florida entered a default judgment of permanent injunction against Defendants Focus Financial Associates, Inc. and Focus Development Center, Inc. The Default Judgment enjoins Defendants against future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder. In addition to injunctive relief, the Default Judgment provides for disgorgement of ill-gotten gains, prejudgment interest thereon and the imposition of civil penalties to be determined at a later date.
The Commission alleged in its Complaint that Defendants made materially false and misleading statements and failed to disclose material information in connection with the sale of twelve-month notes in violation of the federal securities laws.