UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16677 / September 1, 2000
Securities and Exchange Commission v. Texas Titan Resources, Inc., Civil Action No. 00C4801 (N.D. Illinois, Eastern Division).
The Securities and Exchange Commission announced that an Order requiring compliance with a subpoena duces tecum ("Order") was entered recently against Texas Titan Resources, Inc. ("Titan") in Securities and Exchange Commission v. Texas Titan Resources, Inc., Civil Action No. 00C4801 (N.D. Illinois, Eastern Division). Titan initially refused to produce certain corporate documents called for by the Commission's subpoena based on a presumed right against compelled self-incrimination under the Fifth Amendment to the United States Constitution.
In response to Titan's assertion, the Commission argued that neither corporations nor their officers, directors or employees are entitled to withhold corporate documents by claiming the protection of the Fifth Amendment. Further, the Commission argued that dissolved corporations and their former officers, directors and employees are treated the same for Fifth Amendment purposes as existent corporations and current officers, directors and employees.
On August 17, 2000, the Honorable George W. Lindberg of the United States District Court for the Northern District of Illinois entered the Order requiring Texas Titan Resources, Inc. to comply with the Commission's subpoena. Specifically, Judge Lindberg held that Titan and its current and former officers, directors or employees could not refuse to comply with a subpoena for corporate documents on Fifth Amendment grounds, despite the fact that Titan has been dissolved.