SEC v. Steven V. Cotton, No. LR-17799, Central District of California (Oct. 23, 2002) — Press Release
raw: Steven V. Cotton
Steven V. Cotton, No. LR-17799 (Oct. 23, 2002)
Steven V. Cotton, former CFO and COO of Lantronix, Inc., is being pursued by the SEC for failing to comply with a subpoena seeking his financial and brokerage records, with no fraud charges yet filed and a hearing on enforcement still pending.
The SEC filed an application in federal court to enforce an investigative subpoena against Steven V. Cotton, former CFO and COO of Lantronix, Inc., alleging he has not fully provided requested financial and brokerage documents. The Commission asserts Cotton has offered no valid justification for his non-compliance, and the documents are relevant to an ongoing investigation into potential securities law violations. No formal charges or monetary penalties have been brought at this stage; the matter remains in the pre-litigation enforcement phase with no hearing scheduled.
Steven V. Cotton, former Chief Financial Officer and Chief Operating Officer of Lantronix, Inc., is facing an SEC application to enforce an investigative subpoena demanding his financial and brokerage records. The SEC alleges Cotton has failed to fully comply with the subpoena and has provided no legitimate justification for withholding the documents, which are pertinent to an ongoing investigation into possible securities law violations. No criminal or civil charges have been filed against Cotton at this time, and the proceeding is strictly focused on compelling document production. A hearing on the SEC’s enforcement application has not yet been scheduled, indicating the matter remains in its preliminary, pre-litigation phase. The subpoena targets information that could shed light on potential misconduct, but the SEC has not publicly disclosed the nature of the underlying investigation. Cotton’s non-compliance appears to be the sole issue before the court, with no allegations of fraud, embezzlement, or accounting irregularities yet asserted. This enforcement action reflects the SEC’s standard procedure to secure evidence before determining whether to pursue formal charges. The outcome of this proceeding may determine whether the SEC proceeds with broader legal action against Cotton or Lantronix.
Extracted insights
- agency Securities and Exchange Commission
- SEC Seeks to Enforce Subpoena against Steven V. Cotton
- The Commission Filed Application for Order to Enforce Subpoena
- The Subpoena Seeks Documents from Cotton
- The Commission's Application Alleges Cotton Has Not Fully Complied with Subpoena
- Cotton Has No Valid Justification for Failure to Comply
Litigation Release No. 17799 / October 23, 2002 Securities and Exchange Commission v. Steven V. Cotton, Case No. SA CV 02-973 (DOC)(MLGx)(C.D. Cal.) SEC Seeks to Enforce Subpoena against Former Officer of Lantronix On October 22, 2002, the Commission filed an application with the United States District Court for the Central District of California, Southern Division, for an order to enforce an investigative subpoena served on Steven V. Cotton, the former Chief Financial Officer and Chief Operating Officer of Irvine, California-based Lantronix, Inc. The subpoena seeks documents from Cotton regarding, among other things, Cotton's financial and brokerage information. The Commission's application alleges that Cotton has not fully complied with the subpoena issued by the Commission and that Cotton has no valid justification for his failure to comply. A hearing on the Commission's application has not yet been scheduled.
Litigation Release No. 17799 / October 23, 2002 Securities and Exchange Commission v. Steven V. Cotton, Case No. SA CV 02-973 (DOC)(MLGx)(C.D. Cal.) SEC Seeks to Enforce Subpoena against Former Officer of Lantronix On October 22, 2002, the Commission filed an application with the United States District Court for the Central District of California, Southern Division, for an order to enforce an investigative subpoena served on Steven V. Cotton, the former Chief Financial Officer and Chief Operating Officer of Irvine, California-based Lantronix, Inc. The subpoena seeks documents from Cotton regarding, among other things, Cotton's financial and brokerage information. The Commission's application alleges that Cotton has not fully complied with the subpoena issued by the Commission and that Cotton has no valid justification for his failure to comply. A hearing on the Commission's application has not yet been scheduled.