SEC v. Michael Lauer, No. LR-19186, Southern District of Florida (Apr. 15, 2005) — Press Release
raw: Michael Lauer, et al.
Michael Lauer, et al., No. LR-19186 (Apr. 15, 2005)
Michael Lauer was recommended for civil contempt by a magistrate judge for willfully defying multiple court orders in an SEC securities fraud case, including asset freezes, discovery violations, and failing to appear for deposition, with proposed sanctions of indefinite incarceration, a $1,000-per-day fine, and reimbursement of SEC legal costs.
The SEC sought contempt sanctions against Michael Lauer for repeatedly violating court orders in an ongoing securities fraud case, including failing to comply with an asset freeze, ignoring interrogatories, not submitting a Rule 26 Initial Disclosure Statement, and refusing to appear for a scheduled deposition. Chief Magistrate Judge Ann E. Vitunac recommended holding Lauer in civil contempt for bad-faith conduct and obstruction of justice, proposing sanctions of indefinite incarceration, a $1,000 daily fine until compliance, and reimbursement of the SEC’s attorneys’ fees and litigation costs. While the underlying fraud allegations date to 2003, this document does not specify the nature or dollar amount of the fraud, focusing solely on Lauer’s discovery violations and contempt proceedings.
The U.S. Securities and Exchange Commission pursued contempt sanctions against Michael Lauer for a pattern of willful disobedience in an ongoing securities fraud case that originated in 2003. Lauer repeatedly violated multiple court orders, including failing to comply with an asset freeze, refusing to respond to Plaintiff’s First Set of Interrogatories, neglecting to file an Initial Disclosure Statement as required by Rule 26 of the Federal Rules of Civil Procedure, and failing to appear for his duly noticed deposition. Chief United States Magistrate Judge Ann E. Vitunac recommended holding Lauer in civil contempt for acting in bad faith and obstructing the discovery process, citing his persistent disregard for judicial authority. Proposed sanctions included indefinite incarceration until compliance, a daily fine of $1,000 accruing until all orders were fulfilled, and full reimbursement of the SEC’s legal fees and litigation expenses incurred in seeking contempt. Lauer had ten days to file written objections to the magistrate’s recommendation before the District Court issued a final ruling. Although the case stems from prior SEC litigation releases dating back to 2003, the recommendation document does not detail the specific fraudulent conduct or financial amounts involved. The focus remains squarely on Lauer’s obstruction of judicial proceedings rather than the merits of the underlying securities fraud allegations.
Exhibits & Attached Documents (1)
Extracted insights
- $1K $1,000 <$10K
- person michael lauer
- Michael Lauer failed to take part in the discovery process
- Michael Lauer violated court orders
- SEC announced recommendation to hold Michael Lauer in contempt
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 19186 / April 15, 2005 SECURITIES AND EXCHANGE COMMISSION V. MICHAEL LAUER, ET AL., Case No. 03-80612-CIV-MARRA/VITUNAC (S.D. Fla). RECOMMENDATION BY CHIEF UNITED STATES MAGISTRATE JUDGE TO HOLD MICHAEL LAUER IN CONTEMPT FOR FAILING TO TAKE PART IN THE DISCOVERY PROCESS AND REPEATEDLY VIOLATING COURT ORDERS The Securities and Exchange Commission announced that on March 23, 2005, Chief United States Magistrate Judge Ann E. Vitunac recommended to the District Court Judge that Defendant Michael Lauer be held in contempt for acting in bad faith, failing to take part in the discovery process and repeatedly violating Court Orders. Pending before the Court are the Commission's contempt applications, alleging that: (1) Lauer violated the Court's Order freezing Lauer's assets; (2) Lauer violated the Court's Order requiring him to respond to Plaintiff's First Set of Interrogatories; (3) Lauer violated the Court's Order by failing to provide an Initial Disclosure Statement as required pursuant to Rule 26 of the Federal Rules of Civil Procedure; and (4) Lauer violated the Court's Orders to appear for his duly noticed deposition. If the District Court holds Lauer in contempt, Chief Judge Vitunac recommended that the following sanctions be imposed: (1) incarcerate him until he complies with all outstanding court orders; (2) require him to pay a daily fine of $1,000 until he complies with all outstanding court orders; and (3) require him to reimburse the Commission for attorneys' fees, costs, and expenses incurred in seeking the contempt proceedings. Lauer may serve and file written objections to Chief Judge Vitunac's March 23, 2005 recommendation within ten days. A copy of the Magistrate's Report and Recommendation (PFD format, 5.83 MB) 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) and Litigation Release No. 19019 (December 30, 2004). Report and Recommendation
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 19186 / April 15, 2005 SECURITIES AND EXCHANGE COMMISSION V. MICHAEL LAUER, ET AL., Case No. 03-80612-CIV-MARRA/VITUNAC (S.D. Fla). RECOMMENDATION BY CHIEF UNITED STATES MAGISTRATE JUDGE TO HOLD MICHAEL LAUER IN CONTEMPT FOR FAILING TO TAKE PART IN THE DISCOVERY PROCESS AND REPEATEDLY VIOLATING COURT ORDERS The Securities and Exchange Commission announced that on March 23, 2005, Chief United States Magistrate Judge Ann E. Vitunac recommended to the District Court Judge that Defendant Michael Lauer be held in contempt for acting in bad faith, failing to take part in the discovery process and repeatedly violating Court Orders. Pending before the Court are the Commission's contempt applications, alleging that: (1) Lauer violated the Court's Order freezing Lauer's assets; (2) Lauer violated the Court's Order requiring him to respond to Plaintiff's First Set of Interrogatories; (3) Lauer violated the Court's Order by failing to provide an Initial Disclosure Statement as required pursuant to Rule 26 of the Federal Rules of Civil Procedure; and (4) Lauer violated the Court's Orders to appear for his duly noticed deposition. If the District Court holds Lauer in contempt, Chief Judge Vitunac recommended that the following sanctions be imposed: (1) incarcerate him until he complies with all outstanding court orders; (2) require him to pay a daily fine of $1,000 until he complies with all outstanding court orders; and (3) require him to reimburse the Commission for attorneys' fees, costs, and expenses incurred in seeking the contempt proceedings. Lauer may serve and file written objections to Chief Judge Vitunac's March 23, 2005 recommendation within ten days. A copy of the Magistrate's Report and Recommendation (PFD format, 5.83 MB) 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) and Litigation Release No. 19019 (December 30, 2004). Report and Recommendation