U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20870 / January 28, 2009
Securities and Exchange Commission v. James Mulhearn, Damian Delgado, and Adrian Balboa, Case No. 03-61747-CIV-MARTINEZ (S.D. Fla.)
Court Enters Order Dismissing Disgorgement and Civil Penalty Claims Against Defendants James Mulhearn, Damian Delgado and Adrian Balboa
The Securities and Exchange Commission announced that on December 23, 2008, the Honorable Jose E. Martinez, United States District Court Judge for the Southern District of Florida, entered an order granting the Commission's motion to dismiss its monetary claims against Defendants James Mulhearn, Damian Delgado and Adrian Balboa. The Order, entered pursuant to Federal Rule of Civil Procedure 41(a), dismisses the Commission's claims for disgorgement, prejudgment interest and civil penalties against the Defendants based on their criminal conviction and orders requiring them to pay restitution in parallel criminal proceedings.
Previously, all the Defendants consented to the entry of a judgment permanently enjoining them from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act), and Rule 10b-5 thereunder, and Section 15(a) of the Exchange Act as to Balboa and Delgado. In addition, they are barred from participating in any offering of a penny stock.
For further information, see LR-18354 (Sept. 22, 2003) and LR-18769 (June 29, 2004).