U.S. Securities and Exhange Commission
Litigation Release No. 18012 / March 4, 2003
Securities and Exchange Commission v. W.J. Nolan & Co., Inc., (U.S.D.C. D.C., Case Number 1: 02CV00044, filed January 8, 2002).
In January 2003, William J. Nolan, the president and majority shareholder of W.J. Nolan & Co., Inc., paid $198,602.58 in disgorgement, prejudgment interest and post-judgment interest to settle the Commission's Motion for an Order to Show Cause against him and W.J. Nolan.
The Commission filed its Motion for an Order to Show Cause on December 17, 2002, seeking an order holding W.J. Nolan and William Nolan in contempt of court for failing to pay $192,028.29 in disgorgement and prejudgment interest ordered by the United States District Court for the District of Columbia on June 11, 2002. In its Motion, the Commission alleged that on September 24, 2001, the Commission entered an order against W.J. Nolan finding that registered representatives at W.J. Nolan's offices in Chicago, Illinois and on Park Avenue in New York engaged in a pattern of sales practice abuses, including churning customer accounts and making unsuitable and unauthorized trades in microcap and penny stocks. Among other things, the Commission's order required W.J. Nolan to pay disgorgement and prejudgment interest totaling $192,028.29 within thirty days of the entry of the order. William Nolan, on behalf of W.J. Nolan, consented to the entry of the Commission's September 24, 2001 order. Rather than paying the disgorgement and prejudgment interest required by the Commission order, however, William Nolan caused W.J. Nolan to cease business, sold assets belonging to W.J. Nolan for $750,000 and deposited the proceeds of the sale into his personal bank accounts. In January 2002, the Commission filed the present civil action against W.J. Nolan in the District of Columbia seeking an order enforcing the Commission's September 24, 2001 order. Based on Mr. Nolan's payment, the Commission withdrew its Motion for an Order to Show Cause.