SEC v. James L. Koutoulas, No. LR-26022, Southern District of Florida (June 12, 2024) — Press Release
raw: James L. Koutoulas
James L. Koutoulas, No. LR-26022 (June 12, 2024)
summary
The SEC obtained a court order to enforce an investigative subpoena against James L. Koutoulas regarding the potential unregistered sale of 'Let’s Go Brandon' Coin.
paragraph
The SEC is investigating whether James L. Koutoulas or his controlled entities violated federal securities laws through the offer and sale of 'Let’s Go Brandon' Coin (LGBCoin). Koutoulas attempted to quash an administrative subpoena by arguing the asset is not a security, but the Southern District of Florida denied his petition. While no specific charges or dollar amounts have been finalized, the court ordered Koutoulas to comply with the production of documents.
narrative
The U.S. Securities and Exchange Commission is conducting an investigation into James L. Koutoulas and his controlled entities to determine if the 'Let’s Go Brandon' Coin (LGBCoin) was offered and sold as a security. To gather evidence, the SEC issued an administrative subpoena for relevant documents and communications. Koutoulas filed a petition to quash the subpoena, contending that the SEC lacked jurisdiction because LGBCoin does not constitute a security. However, the U.S. District Court for the Southern District of Florida denied the petition and granted the SEC's application to enforce the subpoena. The court ruled that the requested information is essential for determining whether the transaction falls under the SEC's regulatory purview. As of the litigation release, the SEC has not concluded that any laws were violated, and the investigation remains ongoing.
Classified crypto-securities(confidence 95%). EDGAR detection: forms 1-A/S-1/8-K· recall 43% / precision 2%. detection rule →
Parties
Securities and Exchange CommissionJames L. Koutoulas
Keywords
koutoulassecsubpoenajames koutoulaskoutoulas petitionsecuritiesorderjamespetitioninvestigationwhethersecurities exchangedenied koutoulaspetition quashcomply subpoena
Extracted insights
Entities 7
- person austin stephenson
- person james l. koutoulas
- agency sec investigation from atlanta regional office under supervision of peter diskin
- agency Securities and Exchange Commission
- person subpoena enforcement action
- agency to quash filed by james l. koutoulas and ordered compliance with sec subpoena
- court u.s. district court for the southern district of florida
Triples 8
- U.S. Securities And Exchange Commission obtained court order to enforce investigative subpoena to James L. Koutoulas
- U.S. Securities And Exchange Commission is investigating whether James L. Koutoulas or entities he controlled violated federal securities laws in connection with offer and sale of Let’s Go Brandon Coin
- U.S. Securities And Exchange Commission issued administrative subpoena to James L. Koutoulas seeking documents and communications relevant to determining if Let’s Go Brandon Coin was offered and sold as a security
- James L. Koutoulas filed petition to quash SEC subpoena arguing SEC lacked jurisdiction because Let’s Go Brandon Coin is not a security
- U.S. District Court For The Southern District Of Florida denied petition to quash filed by James L. Koutoulas and ordered compliance with SEC subpoena
- U.S. District Court For The Southern District Of Florida opined SEC may investigate whether certain conduct falls within its regulatory purview and that subpoenaed evidence is needed to determine if Let’s Go Brandon Coin was part of a securities transaction
- Austin Stephenson is conducting SEC investigation from Atlanta Regional Office under supervision of Peter Diskin
- Messrs. Stephenson, W. Shawn Murnahan And M. Graham Loomis litigated subpoena enforcement action
Extracted body text (2,346c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26022 / June 12, 2024 James L. Koutoulas v. SEC, Case No. 23-22345-CIV (S.D. Fla. filed June 26, 2023) SEC Obtains Court Order to Enforce Investigative Subpoena to Issuer of Purported Crypto Asset On May 23, 2024, the U.S. District Court for the Southern District of Florida granted the Securities and Exchange Commission's application to enforce a subpoena for the production of documents to James L. Koutoulas (“Koutoulas ”), and denied Koutoulas’s petition to quash that subpoena. If a person or entity refuses to comply with a subpoena issued by SEC enforcement staff pursuant to a formal order of investigation, the Commission may file asubpoena enforcement action in federal district court seeking an order compelling compliance. According to the SEC's filing, the SEC is investigating whether Koutoulas or entities he controlled violated the federal securities laws in connection with the offer and sale of the “Let’s Go Brandon” Coin (“LGBCoin”). As part of the investigation, the SEC issued an administrative subpoena to Koutoulas seeking documents and communications relevant to determining whether LGBCoin was offered and sold as a security. Rather than complying with the subpoena, Koutoulas filed a petition to quash, arguing that the SEC lacked jurisdiction because LGBCoin is not a security. The SEC opposed the petition and cross petitioned for an order compelling obedience with the subpoena. On May 23, 2024, the Court denied Koutoulas’s petition, and ordered him to comply with the subpoena. The Court opined that the SEC may investigate whether certain conduct falls within its regulatory purview and found that “the information sought by the subpoena is exactly the type of evidence that would be needed in order to make the legal determination of whether LGBCoin was part of a transaction in securities.” The SEC is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws. The SEC's investigation is being conducted by Austin Stephenson of the SEC's Atlanta Regional Office under the supervision of Peter Diskin. Messrs. Stephenson, W. Shawn Murnahan and M. Graham Loomis litigated thesubpoena enforcement action. For further information, see Litigation Release No. 26320.
OCR text (2,346c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26022 / June 12, 2024 James L. Koutoulas v. SEC, Case No. 23-22345-CIV (S.D. Fla. filed June 26, 2023) SEC Obtains Court Order to Enforce Investigative Subpoena to Issuer of Purported Crypto Asset On May 23, 2024, the U.S. District Court for the Southern District of Florida granted the Securities and Exchange Commission's application to enforce a subpoena for the production of documents to James L. Koutoulas (“Koutoulas ”), and denied Koutoulas’s petition to quash that subpoena. If a person or entity refuses to comply with a subpoena issued by SEC enforcement staff pursuant to a formal order of investigation, the Commission may file asubpoena enforcement action in federal district court seeking an order compelling compliance. According to the SEC's filing, the SEC is investigating whether Koutoulas or entities he controlled violated the federal securities laws in connection with the offer and sale of the “Let’s Go Brandon” Coin (“LGBCoin”). As part of the investigation, the SEC issued an administrative subpoena to Koutoulas seeking documents and communications relevant to determining whether LGBCoin was offered and sold as a security. Rather than complying with the subpoena, Koutoulas filed a petition to quash, arguing that the SEC lacked jurisdiction because LGBCoin is not a security. The SEC opposed the petition and cross petitioned for an order compelling obedience with the subpoena. On May 23, 2024, the Court denied Koutoulas’s petition, and ordered him to comply with the subpoena. The Court opined that the SEC may investigate whether certain conduct falls within its regulatory purview and found that “the information sought by the subpoena is exactly the type of evidence that would be needed in order to make the legal determination of whether LGBCoin was part of a transaction in securities.” The SEC is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws. The SEC's investigation is being conducted by Austin Stephenson of the SEC's Atlanta Regional Office under the supervision of Peter Diskin. Messrs. Stephenson, W. Shawn Murnahan and M. Graham Loomis litigated thesubpoena enforcement action. For further information, see Litigation Release No. 26320.