Litigation Release No. 19965 / January 11, 2007

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

Final Judgment of Disgorgement Entered Against Paul Johnson

The Securities and Exchange Commission announced that on December 5, 2006, the Honorable Daniel T.K. Hurley, United States District Judge for the Southern District of Florida entered a Final Judgment of Disgorgement against Defendant Paul Johnson.

The Court previously entered a final judgment of permanent injunction against Johnson and further directing the disgorgement of ill gotten gains related to the conduct underlying his conviction of counts 2 through 15 of the parallel superseding criminal indictment (U.S. v. Paul Johnson, Case No. 02-60012-CR-Middlebrooks) together with imposition of civil penalties, with a reservation of jurisdiction to determine the appropriate amounts of disgorgement and civil penalties upon further motion of the Commission. Based on the Commission's motion, the Court ordered Johnson to pay disgorgement in the amount of $1,505,850.00, plus prejudgment interest of $356,825.59 and dismissed with prejudice the Commission's claim for civil money penalty against him.

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), and No. 19831 (September 13, 2006).