SEC v. International Energy and Resources, Inc., No. LR-20216, Central District of California (July 27, 2007) — Press Release
raw: International Energy and Resources, Inc.
International Energy and Resources, Inc., No. LR-20216 (July 27, 2007)
International Energy and Resources, Inc. (IER) was held in contempt by a federal court for willfully failing to produce documents related to an SEC investigation into alleged securities fraud involving purported Arizona gold mining interests, and was ordered to pay a $1,000 daily fine starting July 13, 2007, until compliance.
The U.S. Securities and Exchange Commission (SEC) investigated International Energy and Resources, Inc. (IER) for possible violations of federal securities laws, including unregistered offerings and antifraud provisions tied to purported gold mining interests in Arizona. After a December 2006 court order compelled IER to produce documents by January 17, 2007, the company failed to comply with any part of the subpoena, offering no valid justification. On July 6, 2007, the U.S. District Court found IER in contempt and imposed a daily fine of $1,000 beginning July 13, 2007, until full document production was achieved.
The U.S. Securities and Exchange Commission (SEC) initiated a formal private investigation into International Energy and Resources, Inc. (IER), a Texas corporation with offices in Dallas and Scottsdale, over suspected violations of federal securities laws related to the offer and sale of securities tied to purported gold mining interests in Arizona. In December 2006, a federal court issued an enforcement order compelling IER to produce all requested documents by January 17, 2007, pursuant to two SEC subpoenas. Despite this clear directive, IER failed to produce any documents whatsoever, and provided no legitimate excuse for its noncompliance. On July 6, 2007, U.S. District Judge A. Howard Matz found IER in contempt of court for its persistent refusal to comply. The court ordered IER to pay a daily fine of $1,000 beginning July 13, 2007, to be assessed until all documents were fully produced. The contempt ruling was a civil enforcement measure aimed at compelling compliance, not a criminal prosecution, and no additional monetary penalties or charges beyond the daily fine were reported. The case underscores the SEC’s authority to enforce document production in securities fraud investigations and the courts’ willingness to impose escalating sanctions for obstruction.
Extracted insights
- $1K $1,000 <$10K
- agency the securities and exchange commission
- International Energy and Resources, Inc. found in contempt subpoena
- Honorable A. Howard Matz entered an order finding International Energy and Resources, Inc. in contempt
- The Securities and Exchange Commission announced that on July 6, 2007 Honorable A. Howard Matz entered an order finding International Energy and Resources, Inc. in contempt
- Enforcement Order assesses a daily fine
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20216 / July 27, 2007 SEC v. International Energy and Resources, Inc., Case No. CV 06-07694 AHM (JTLx) (C.D. Cal.) Court Finds International Energy and Resources, Inc. in Contempt of Subpoena Enforcement Order and Assesses Daily Fine The Securities and Exchange Commission announced that, on July 6, 2007, the Honorable A. Howard Matz, United States District Judge for the Central District of California, entered an order finding International Energy and Resources, Inc. (IER) in contempt of the court's previous subpoena enforcement order to produce documents. The court also ordered IER to pay a daily fine in the amount of $1,000 for each day, after July 13, 2007, that it fails to produce all of the documents as required by the subpoena enforcement order. IER is a Texas corporation with offices in Dallas, Texas and Scottsdale, Arizona. The Commission's application for contempt and supporting papers allege that in December 2006, the court entered an order compelling IER to produce all documents, in response to two Commission subpoenas, no later than January 17, 2007. The Commission further alleged that the subpoenas were issued pursuant to a formal order of private investigation entitled in the Matter of International Energy and Resources, Inc., which concerns possible violations of the registration and antifraud provisions of the federal securities laws in connection with the offer, purchase, or sale of securities related to purported gold mining interests in Arizona. According to the Commission's application and supporting documents, IER failed to produce any documents after the court issued the December subpoena enforcement order. The district court found that, as set forth in the Commission's application, IER had no valid justification for its failure to comply with the order.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20216 / July 27, 2007 SEC v. International Energy and Resources, Inc., Case No. CV 06-07694 AHM (JTLx) (C.D. Cal.) Court Finds International Energy and Resources, Inc. in Contempt of Subpoena Enforcement Order and Assesses Daily Fine The Securities and Exchange Commission announced that, on July 6, 2007, the Honorable A. Howard Matz, United States District Judge for the Central District of California, entered an order finding International Energy and Resources, Inc. (IER) in contempt of the court's previous subpoena enforcement order to produce documents. The court also ordered IER to pay a daily fine in the amount of $1,000 for each day, after July 13, 2007, that it fails to produce all of the documents as required by the subpoena enforcement order. IER is a Texas corporation with offices in Dallas, Texas and Scottsdale, Arizona. The Commission's application for contempt and supporting papers allege that in December 2006, the court entered an order compelling IER to produce all documents, in response to two Commission subpoenas, no later than January 17, 2007. The Commission further alleged that the subpoenas were issued pursuant to a formal order of private investigation entitled in the Matter of International Energy and Resources, Inc., which concerns possible violations of the registration and antifraud provisions of the federal securities laws in connection with the offer, purchase, or sale of securities related to purported gold mining interests in Arizona. According to the Commission's application and supporting documents, IER failed to produce any documents after the court issued the December subpoena enforcement order. The district court found that, as set forth in the Commission's application, IER had no valid justification for its failure to comply with the order.