U.S. Securities and Exchange Commission
Litigation Release No. 18708 / May 12, 2004
Securities and Exchange Commission v. James J. Farley and Shelley J. Farley, United States District Court for the Northern District of Georgia, Civil Action No. 1:04-MI-0118
The Securities and Exchange Commission announced today that on May 7, 2004, it filed a subpoena enforcement action in the U. S. District Court for the Northern District of Georgia against James J. Farley and Shelley J. Farley. Pursuant to subpoenas issued on August 11, 2003, the Farleys were obligated to produce documents by August 22, 2003, and to appear for testimony before the Commission on September 8, 2003. After communications with the Commission through counsel establishing a new testimony date, the Farleys did produce certain documents but failed to produce other documents called for by the subpoenas, and did not ultimately appear for testimony. Accordingly, the Commission filed its Application For An Order To Show Cause And For An Order Requiring Obedience To Subpoenas, along with a supporting Memorandum and Declaration.
In its Application and supporting filings, the Commission alleges that on June 3, 2003, the Commission issued its Order Directing Private Investigation and Designating Officers to Take Testimony (Formal Order) in the CryoLife, Inc. (CRY) investigation. The Formal Order authorizes the staff to conduct an investigation into whether, among other things, CRY or certain persons and entities associated with it violated the anti-fraud provisions of the federal securities laws. Pursuant to its Application, the Commission is seeking an order directing the Farleys to show cause why the Court should not enter an order requiring them to appear for testimony and produce the required documents.