Despicte a 10-day trading suspension and an administrative proceeding instituded by the Commission to revoke the registration of CMKM's stock, fradulent trading continued. (Id. at 4:1-7.) In the end 40,000 investors lost $64.2 million while Defendants' enriched themseleves. The scheme produced $26.4 million for edwards, $2.3 million for Anderson and $648,500 for the Tomassos. (Id. at 3:1, 3, 23; 17:5; 18.21.) Throught consent decreasees, Edwards, Anderson and the Tomassos admitted to violations of Section 5(a) and 5(c) of the Securites Act, 15 U.S.c.77e(a) and 77e(c), for the unregistered offer and sale of securites. The Commission now seeks the following remedies....disgorgement of ill-gotten gains, including prejudgment interest and civil monetary penalties. Once a district court has found federal securities lawas violations, it has "broad equitable power to fashion appropriate remedies" Also the defendant's recognition of the wrongful nature of his conduct; (4) the likelihood because the dendant's professional occupation, that future violations might occure; and (5) the sincerity fo the defendants assurances against future violations. (applying the factors to assess a civil penalty).
etc...........
Date: June 25, 2009
Signed by: Molly M. White
