SEC v. Michael Lauer, No. LR-19661, Southern District of Florida (Apr. 18, 2006) — Press Release
raw: Michael Lauer, et al.
Michael Lauer, et al., No. LR-19661 (Apr. 18, 2006)
Michael Lauer was precluded from testifying at trial for repeatedly violating court orders, including an asset freeze and obstructing discovery, in an SEC securities fraud case initiated in 2003, with judicial sanctions imposed for bad-faith conduct but no final judgment on the underlying fraud allegations.
Michael Lauer was sanctioned by U.S. District Judge Kenneth A. Marra in March 2006 with preclusion from testifying at trial for violating an asset freeze order, acting in bad faith by obstructing discovery, and repeatedly defying court directives. The SEC’s case against him, filed in 2003, alleged securities fraud involving false financial statements and misappropriation of investor funds, though specific monetary amounts were not disclosed in the litigation releases. This testimonial sanction, clarified in a March 14, 2006 order, was the culmination of multiple prior contempt rulings and procedural sanctions documented in seven SEC litigation releases between 2003 and 2006.
Michael Lauer faced escalating judicial sanctions in an SEC securities fraud case initiated in 2003, culminating in a March 14, 2006 order that precluded him from testifying at trial. The U.S. District Court for the Southern District of Florida found Lauer in contempt for violating an asset freeze order, obstructing the discovery process, and repeatedly disregarding court directives, all deemed acts of bad faith. Although the SEC alleged fraud involving false financial statements and misappropriation of investor funds, no specific dollar amounts were detailed in the public litigation releases. The court’s decision to bar his testimony was not a ruling on the merits of the fraud claims but a procedural sanction for his obstruction of justice. This sanction followed seven prior SEC litigation releases between 2003 and 2006 documenting his noncompliance and the court’s growing frustration with his conduct. Lauer’s pattern of defiance led to multiple contempt rulings and procedural penalties throughout the litigation. The case underscores the judiciary’s authority to impose severe sanctions against parties who undermine the integrity of judicial proceedings, even before a final determination on the underlying allegations.
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- person michael lauer
- Michael Lauer is precluded from testifying at trial on his own behalf for violating asset freeze order, acting in bad faith by failing to take part in discovery, and repeatedly violating court orders
- U.S. Securities and Exchange Commission announced that on March 14, 2006, Judge Kenneth A. Marra clarified his January 24, 2006 order regarding Michael Lauer
- Judge Kenneth A. Marra clarified his January 24, 2006 order against Michael Lauer
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 19661 / April 18, 2006 SEC v. Michael Lauer, et al., Case No. 03-80612-CIV-MARRA/VITUNAC (S.D. Fla). Michael Lauer Is Precluded From Testifying at Trial on His Own Behalf for Violating Asset Freeze Order, Acting in Bad Faith by Failing to Take Part in the Discovery Process and Repeatedly Violating Court Orders The Securities and Exchange Commission announced that on March 14, 2006, the Honorable Kenneth A. Marra, United States District Judge for the Southern District of Florida clarified his January 24, 2006 Order holding Defendant Michael Lauer in contempt of Court for violating the Court's asset freeze order, acting in bad faith by failing to take part in the discovery process and repeatedly violating Court Orders. The Court clarified that Lauer is precluded from testifying at the trial on his own behalf. A copy of the District Court's Order (PDF format) may be found at the Commission's website. For further information, see Litigation Release No. 18226 (July 10, 2003), Litigation Release No. 18247 (July 23, 2003), Litigation Release No. 18991 (December 2, 2004), Litigation Release No. 19018 (December 30, 2004), Litigation Release No. 19019 (December 30, 2004), Litigation Release No. 19042 (January 21, 2005), Litigation Release No. 19186 (April 15, 2005); and Litigation Release No. 19590 (March 6, 2006). Order in this matter
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 19661 / April 18, 2006 SEC v. Michael Lauer, et al., Case No. 03-80612-CIV-MARRA/VITUNAC (S.D. Fla). Michael Lauer Is Precluded From Testifying at Trial on His Own Behalf for Violating Asset Freeze Order, Acting in Bad Faith by Failing to Take Part in the Discovery Process and Repeatedly Violating Court Orders The Securities and Exchange Commission announced that on March 14, 2006, the Honorable Kenneth A. Marra, United States District Judge for the Southern District of Florida clarified his January 24, 2006 Order holding Defendant Michael Lauer in contempt of Court for violating the Court's asset freeze order, acting in bad faith by failing to take part in the discovery process and repeatedly violating Court Orders. The Court clarified that Lauer is precluded from testifying at the trial on his own behalf. A copy of the District Court's Order (PDF format) may be found at the Commission's website. For further information, see Litigation Release No. 18226 (July 10, 2003), Litigation Release No. 18247 (July 23, 2003), Litigation Release No. 18991 (December 2, 2004), Litigation Release No. 19018 (December 30, 2004), Litigation Release No. 19019 (December 30, 2004), Litigation Release No. 19042 (January 21, 2005), Litigation Release No. 19186 (April 15, 2005); and Litigation Release No. 19590 (March 6, 2006). Order in this matter