Securities and Exchange Commission
Litigation Release No. 18062 / April 2, 2003
SEC Files Contempt Motion Against
Roc Hatfield for Violating the Court's Order
of May 6, 2002
Securities and Exchange Commission v. Marada Global Corporation, et al., Case No. 94-CV-1504 (M.D. Fla).
The Securities and Exchange Commission (SEC) announced that on March 18, 2003, it filed with the United States District Court for the Middle District of Florida, an Application for an Order to Show Cause why Roc Hatfield should not be held in civil contempt for failing to comply with the Court's Order of May 6, 2002.
The May 6, 2002 Order found that Hatfield and Global Diamond Fund, Inc. (GDF) were in contempt of the Court's September 8, 1995, Final Judgment of Permanent Injunction enjoining Hatfield from further violations of the antifraud and registration provisions of the federal securities laws. The contempt finding was based on Hatfield's and GDF's fraudulent unregistered sale of promissory notes, secured by diamonds, to one investor. The Court asked the investor to elect to keep the diamonds or request reimbursement of the monies that he invested. The investor requested reimbursement of the monies and on September 24, 2002 the Court ordered Hatfield to pay the investor $25,000. The Court granted Hatfield numerous extensions of time within which to pay the investor with a final deadline of January 6, 2003. To date, Hatfield has failed to pay any money to the investor. The Court has ordered Hatfield to appear at a hearing on April 10, 2003 to show cause why he should not be held in contempt for failing to abide by the terms of the Court's May 6, 2002 Order.
For more information on earlier actions in this case, see Litigation Release No. 17441 (March 27, 2002), Litigation Release No. 17747 (September 26, 2002) and Litigation Release No. 17748 (September 26, 2002).