U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20802 / November 12, 2008
SEC v. Larry W. Kerschenbaum, Case No. 08-61452-CIV-Altonaga in the United States District Court for the Southern District of Florida
Default Final Judgment of Permanent Injunction and Other Relief Entered Against Defendant Larry W. Kerschenbaum
The Securities and Exchange Commission announced that on November 7, 2008, the United States District Court for the Southern District of Florida entered a default final judgment of permanent injunction against Larry W. Kerschenbaum (Kerschenbaum) for violating a 2004 Commission administrative order prohibiting him from selling penny stocks. Kerschenbaum violated the order by soliciting investors to purchase shares of penny stock in a now defunct Fort Lauderdale-based company.
As the complaint alleges, in June 2004, an Administrative Law Judge entered an order by default against Kerschenbaum barring him from participating in any offering of penny stock. The judge imposed the bar against Kerschenbaum based on his 2003 conviction for conspiring to commit securities fraud by agreeing to bribe brokers to artificially increase the stock price of a public company.
The default final judgment enjoins Kerschenbaum from future violations of Section 15(b)(6)(B)(i) of the Securities Exchange Act of 1934. In addition, the final judgment orders Kerschenbaum to pay $63,500 in disgorgement, plus $13,858.52 in prejudgment interest, and a $63,500 civil penalty, and permanently bars him from participating in any offering of a penny stock.
For additional information, see Litigation Release No. 20714 (Sept. 12, 2008). [SEC v. Larry W. Kerschenbaum, Case No. 08-61452-CIV-Altonaga (S.D. Fla.)]