U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20562 / May 8, 2008
SEC v. Jason R. Hyatt, Jay Johnson and Hyatt Johnson Capital, LLC, Civil Action No. 1:08-cv-2224 (N.D. Ill.)(Lindberg, J.)
The Securities and Exchange Commission ("Commission") announced that on May 5, 2008, the Honorable George W. Lindberg of the United States District Court for the Northern District of Illinois issued an agreed order appointing Robert P. Handler as receiver for Defendant Hyatt Johnson Capital, LLC ("HJ Capital"). This order empowers the receiver, to, among other things, take control of HJ Capital's operations and marshal, recover, and preserve investor assets. Investor inquiries may be made to the receiver at (312) 428-4859 or email@example.com.
In addition, the Court issued agreed preliminary injunctions against further violations of Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder by Defendants Hyatt, Johnson, and HJ Capital. The Court also ordered an agreed continued freeze over the assets of Defendants Hyatt and HJ Capital for the remainder of the Commission's litigation.
Previously, on April 18, 2008, the Honorable William J. Hibbler of the United States District Court for the Northern District of Illinois, acting as emergency judge, issued an ex parte order for emergency relief against Defendants Hyatt, a resident of St. Charles, Illinois, Johnson, a resident of Downers Grove, Illinois, and HJ Capital, a privately-held company headquartered in Downers Grove, Illinois. The Order, among other things, imposed an asset freeze on all assets under the control of Defendants Hyatt and HJ Capital. See Litigation Release No. 20540 issued on April 25, 2008.
Also on April 18, 2008, the Commission filed a civil injunctive complaint alleging that Defendants Hyatt, Johnson, and HJ Capital, from approximately 2003 through 2007, while acting as unregistered broker-dealers and investment advisers, misappropriated at least $5.4 million in investor funds. The Complaint alleged that, as a result of their conduct, the Defendants violated Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder.