Coercion of the defendant to comply with a court’s order may be achieved by the incarceration of the contemnor until he purges himself of contempt. Shillitani v. United States, 384 U.S. at 370; Penfield Co. v. SEC, 330 U.S. 585, 590, 67 S. Ct. 918, 91 L. Ed. 1117 (1947), reh’g denied, 331 U.S. 865. Courts have ordered defendants incarcerated for failing to pay disgorgement. See SEC v. Margolin, 1996 U.S. Dist. LEXIS 11299 *13-15 (S.D.N.Y. 1996) (where defendant did not submit any funds in satisfaction of judgment appropriate to incarcerate defendant to compel payment of disgorgement).
Now wouldn't that be fun?
Therefore, the Commission requests that the Court order Altomare to be incarcerated immediately until he purges his contempt of the officer and director bar, by submitting to Universal Express a letter of resignation from his positions as the president, chief executive officer, chief accounting officer, and chairman of the board of directors, and issuing a press release posted on the Universal Express website at www.usxp.com stating he has resigned his positions as the president, chief executive officer, chief accounting officer, and chairman of the board of directors to comply with the Court’s order barring him from serving as an officer or director of a public company with shares registered under Section 12 of the Securities Exchange Act of 1934. Further, the Commission requests the Court to order Altomare to cause Universal Express to file a disclosure on Form 8-K with the Commission disclosing his resignation as an officer and director of the company to comply with the Court’s Final Judgment. To establish his compliance with the Court’s order, Altomare should be ordered to file with the Court copies of his resignation letter, along with the press release, copy of the website posting, and Form 8-K disclosing his resignation.
