Litigation Release No. 19831 / September 13, 2006

SEC v. Paul R. Johnson, et al., Case No. 01-7874-CIV-HURLEY (S.D. Fla.)

District Court Grants Partial Summary Judgment in Favor of the SEC and Enters Final Partial Judgment of Permanent Injunction and Other Relief Against Defendant Paul R. Johnson

The Securities and Exchange Commission announced that on August 21, 2006, the Honorable Daniel T.K. Hurley, United States District Judge for the Southern District of Florida issued an order partially granting summary judgment in favor of the Commission and against Defendant Paul R. Johnson and entering a Judgment of Permanent Injunction against Johnson. The Court found Johnson liable, under the application of collateral estoppel principles, for violations of the securities registration and anti-fraud provisions of Sections 5(a), 5(c) and 17(a) the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. These charges alleged the same violations that led to Johnson's conviction on fourteen substantive securities fraud counts in a parallel criminal case U.S. v. Paul Johnson, Case No. 02-60012-CR-Middlebrooks. In addition, the Judgment bars Johnson from acting as an officer or director of any issuer that has securities registered pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d) of the Exchange Act. The Court deferred ruling on the imposition of a civil monetary penalty against Johnson.

The SEC began this action by filing its complaint on December 12, 2001, against Johnson, among others.

For more information, see Litigation Releases No. 17277 (December 17, 2001), No. 17338 (January 24, 2002), No. 17375 (February 22, 2002), No. 18439 (October 31, 2003).