SEC v. Jason R. Hyatt; Jay Johnson; and Hyatt Johnson Capital, LLC, No. LR-20667, Northern District of Illinois (Aug. 1, 2008) — Press Release
raw: Jason R. Hyatt, Jay Johnson and Hyatt Johnson Capital, LLC
Jason R. Hyatt, Jay Johnson and Hyatt Johnson Capital, LLC, No. 1:08-CV-2224 (Aug. 1, 2008)
Jason R
Jason R. Hyatt, along with Jay Johnson and Hyatt Johnson Capital, LLC, was accused by the SEC of misappropriating at least $5.4 million from investors between 2003 and 2007 while operating as unregistered broker-dealers and investment advisers, violating multiple securities laws. Hyatt and his wife, Heidi Hyatt, were found in contempt of court for violating an asset freeze order by withdrawing $57,000 in cash from Hyatt’s frozen accounts shortly after the order was issued. In addition to the SEC’s civil case, Hyatt faced an 11-count federal criminal indictment for wire fraud, bank fraud, money laundering, and tax crimes including tax evasion and filing false returns. The court ordered Hyatt to return the withdrawn funds, and the SEC’s asset freeze remained in place. Hyatt’s criminal case proceeded separately, with potential for significant prison time alongside civil penalties.
Jason R. Hyatt, along with Jay Johnson and Hyatt Johnson Capital, LLC, was accused by the SEC of misappropriating at least $5.4 million from investors between 2003 and 2007 while operating as unregistered broker-dealers and investment advisers, violating multiple securities laws. Hyatt and his wife, Heidi Hyatt, were found in contempt of court for violating an asset freeze order by withdrawing $57,000 in cash from Hyatt’s frozen accounts shortly after the order was issued. In addition to the SEC’s civil case, Hyatt faced an 11-count federal criminal indictment for wire fraud, bank fraud, money laundering, and tax crimes including tax evasion and filing false returns. The court ordered Hyatt to return the withdrawn funds, and the SEC’s asset freeze remained in place. Hyatt’s criminal case proceeded separately, with potential for significant prison time alongside civil penalties. The SEC sued Jason R. Hyatt, his wife Heidi Hyatt, fellow broker‑dealer Jay Johnson and their firm Hyatt Johnson Capital, LLC, alleging that from about 2003‑2007 they operated as unregistered broker‑dealers and investment advisers and misappropriated at least $5.4 million of investor funds in violation of the Securities Act, Exchange Act and Advisers Act. After the court issued an emergency asset‑freeze order on April 18, 2008, the Hyatts allegedly violated it when Heidi withdrew roughly $57,000 in cash and made numerous phone calls to Jason, prompting the SEC’s contempt motion. On July 25, 2008 the Northern District of Illinois entered an Agreed Contempt Order finding Jason and Heidi Hyatt in contempt and ordering the return of the withdrawn cash. In parallel, a federal grand jury returned an eleven‑count criminal indictment against Jason Hyatt charging wire fraud, bank fraud, money‑laundering, false tax filings, failure to file tax returns and tax evasion. The civil contempt finding and the criminal indictment together constitute the current resolution of the SEC’s enforcement action. The SEC sued Jason R. Hyatt, his wife Heidi Hyatt, Jay Johnson and their firm Hyatt Johnson Capital LLC, alleging that from about 2003‑2007 they operated as unregistered broker‑dealers and investment advisers and misappropriated at least $5.4 million of investor funds in violation of the Securities Act, Exchange Act and Advisers Act. After the court froze all of Jason Hyatt’s assets on April 18, 2008, the SEC moved for contempt, accusing the Hyatts of withdrawing roughly $57,000 in cash and making numerous phone calls to evade the freeze; the district court entered an Agreed Contempt Order on July 25, 2008 ordering the cash returned. In parallel, a special grand jury indicted Jason Hyatt on eleven criminal counts, including wire and bank fraud, money‑laundering, filing false tax returns, failure to file tax returns and tax evasion. The civil contempt finding and the criminal indictment together constitute the resolution of the SEC’s enforcement action as of the August 1, 2008 release.
Extracted insights
- $5.40M $5.4 million $1M–$10M
- $57K $57,000 $10K–$100K
- agency the securities and exchange commission
- The Securities and Exchange Commission announced Honorable George Lindberg entered an Agreed Order on July 25, 2008
- Honorable George Lindberg entered an Agreed Order finding contempt of the April 18, 2008 Asset Freeze Order by Jason R. Hyatt and Heidi E. Hyatt
- SEC issued Litigation Release No. 20667 on August 1, 2008
- Litigation Release No. 20667 covers SEC v. Jason R. Hyatt, Jay Johnson and Hyatt Johnson Capital, LLC, Civil Action No. 1:08-CV-2224
- Jason R. Hyatt is defendant in SEC v. Jason R. Hyatt, Jay Johnson and Hyatt Johnson Capital, LLC
- Heidi E. Hyatt is named in Asset Freeze Order findings of contempt
- Jay Johnson is associated with Hyatt Johnson Capital, LLC
- Hyatt Johnson Capital, LLC is defendant in SEC v. Jason R. Hyatt, Jay Johnson and Hyatt Johnson Capital, LLC
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20667 / August 1, 2008 SEC v. Jason R. Hyatt, Jay Johnson and Hyatt Johnson Capital, LLC, Civil Action No. 1:08-CV-2224 (N.D. Ill.) (Lindberg, J.) The Securities and Exchange Commission ("Commission") announced that on July 25, 2008, the Honorable George Lindberg, United States District Court, Northern District of Illinois, entered an Agreed Order Making Findings of Contempt of the Court's April 18, 2008 Asset Freeze Order by Jason R. Hyatt and Heidi E. Hyatt (the "Contempt Order"). The Contempt Order found that Jason Hyatt, a resident of St. Charles, Illinois, and Heidi Hyatt, Jason Hyatt's spouse and also a resident of St. Charles, Illinois, were in contempt of an order (the "Asset Freeze Order"). The Asset Freeze Order entered by the Honorable William Hibbler acting as emergency judge froze all of the assets of Jason Hyatt. Previously, on April 18, 2008, the Commission filed a civil injunctive complaint alleging that Defendants Jason Hyatt, Jay Johnson, and Hyatt Johnson Capital LLC, from approximately 2003 through 2007, while acting as unregistered broker-dealers and investment advisers, misappropriated at least $5.4 million in investor funds. The Complaint alleged that, as a result of their conduct, the Defendants violated Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. A part of the action, the Commission also sought and obtained various emergency remedies, including the entry of the Asset Freeze Order freezing all of Jason Hyatt's assets. On April 19, 2008, the Commission filed a Motion to Show Cause (the "Contempt Motion") against Jason Hyatt and Heidi Hyatt alleging that they acted in contempt of the Court's April 18, 2008 Asset Freeze Order. The Commission's Contempt Motion alleged that, after Jason Hyatt received notice of the Asset Freeze Order, Heidi Hyatt withdrew at least $57,000 in cash from Jason Hyatt's bank account in three separate visits to two different branches of a bank over an approximately one-hour period. The Commission stated in a pre-hearing status report in connection with the Contempt Motion that thirteen telephone calls took place between Jason Hyatt and Heidi Hyatt shortly after Jason Hyatt learned of the Asset Freeze Order. While the Contempt Motion was pending, the Court ordered Jason Hyatt to return substantially all of the cash to his bank account. The Commission also announced that on June 12, 2008, the Special June 2007 Grand Jury for the Northern District of Illinois returned an eleven-count indictment for Jason Hyatt. U.S. v. Jason R. Hyatt, Criminal Action No. 1:08-cr-0469 (N.D. Ill.) (Kocoras, J.). This indictment included various counts of wire fraud (18 USC 1343), bank fraud (18 USC 1014), engaging in monetary transactions in property derived from specified unlawful activity (18 USC 1957(a)), filing a false income tax return (26 USC 7206(1)), willful failure to file a tax return (26 USC 7203), and tax evasion (26 USC 7201). # # #U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20667 / August 1, 2008 SEC v. Jason R. Hyatt, Jay Johnson and Hyatt Johnson Capital, LLC, Civil Action No. 1:08-CV-2224 (N.D. Ill.) (Lindberg, J.) The Securities and Exchange Commission ("Commission") announced that on July 25, 2008, the Honorable George Lindberg, United States District Court, Northern District of Illinois, entered an Agreed Order Making Findings of Contempt of the Court's April 18, 2008 Asset Freeze Order by Jason R. Hyatt and Heidi E. Hyatt (the "Contempt Order"). The Contempt Order found that Jason Hyatt, a resident of St. Charles, Illinois, and Heidi Hyatt, Jason Hyatt's spouse and also a resident of St. Charles, Illinois, were in contempt of an order (the "Asset Freeze Order"). The Asset Freeze Order entered by the Honorable William Hibbler acting as emergency judge froze all of the assets of Jason Hyatt. Previously, on April 18, 2008, the Commission filed a civil injunctive complaint alleging that Defendants Jason Hyatt, Jay Johnson, and Hyatt Johnson Capital LLC, from approximately 2003 through 2007, while acting as unregistered broker-dealers and investment advisers, misappropriated at least $5.4 million in investor funds. The Complaint alleged that, as a result of their conduct, the Defendants violated Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. A part of the action, the Commission also sought and obtained various emergency remedies, including the entry of the Asset Freeze Order freezing all of Jason Hyatt's assets. On April 19, 2008, the Commission filed a Motion to Show Cause (the "Contempt Motion") against Jason Hyatt and Heidi Hyatt alleging that they acted in contempt of the Court's April 18, 2008 Asset Freeze Order. The Commission's Contempt Motion alleged that, after Jason Hyatt received notice of the Asset Freeze Order, Heidi Hyatt withdrew at least $57,000 in cash from Jason Hyatt's bank account in three separate visits to two different branches of a bank over an approximately one-hour period. The Commission stated in a pre-hearing status report in connection with the Contempt Motion that thirteen telephone calls took place between Jason Hyatt and Heidi Hyatt shortly after Jason Hyatt learned of the Asset Freeze Order. While the Contempt Motion was pending, the Court ordered Jason Hyatt to return substantially all of the cash to his bank account. The Commission also announced that on June 12, 2008, the Special June 2007 Grand Jury for the Northern District of Illinois returned an eleven-count indictment for Jason Hyatt. U.S. v. Jason R. Hyatt, Criminal Action No. 1:08-cr-0469 (N.D. Ill.) (Kocoras, J.). This indictment included various counts of wire fraud (18 USC 1343), bank fraud (18 USC 1014), engaging in monetary transactions in property derived from specified unlawful activity (18 USC 1957(a)), filing a false income tax return (26 USC 7206(1)), willful failure to file a tax return (26 USC 7203), and tax evasion (26 USC 7201). # # #