2026-02-11 sec-litreleases judgment 191 KB 16,879 chars
SEC v. NICHOLAS BOWERMAN, No. 1:24-cv-12282, District of Massachusetts (Feb. 11, 2026) — Judgment

raw: SEC v. NICHOLAS BOWERMAN
SEC v. NICHOLAS BOWERMAN, No. 1:24-cv-12282 (Feb. 11, 2026)
Caption: Securities and Exchange Commission v. Bowerman
Enriched metadata

Scheme: accounting-fraud (97%)
Court: District of Massachusetts
Case No.: 1:24-cv-12282
Disgorgement: $21,972
Civil penalty: $75,000
Classified accounting-fraud(confidence 97%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 80% / precision 48%. detection rule →
Extracted insights

Dollar amounts 4
$75K $75,000 $10K–$100K
$22K $21,972 $10K–$100K
$18K $17,823 $10K–$100K
$4K $4,148 <$10K
Triples 8
Securities And Exchange Commission commenced this action by filing a Complaint against Defendant Nicholas Bowerman
Defendant was personally served with a copy of the complaint and a summons on September 17, 2024
Defendant has not filed an answer
Commission filed a renewed request for entry of default as to Defendant on December 19, 2024
clerk entered a Notice of Default against Defendant on January 13, 2025
Court finds that Defendant has violated Sections 17(a) of the Securities Act and Sections 10(b), 13(a), 13(b)(2)(a), 13(b)(2)(b), and 13(b)(5) of the Exchange Act, and Rules 10b-5(a) and (c), 13a-1, 13a-11, 13a-13, and 13b2-1 thereunder
Court awards judgment in favor of Plaintiff Securities And Exchange Commission against Defendant Nicholas Bowerman
Court restrains and enjoins Defendant from violating Section 17(a) of the Securities Act of 1933
PDF
SEC v. NICHOLAS BOWERMAN · Source
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Extracted body text (16,879c)
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS

SECURITIES AND EXCHANGE
COMMISSION,

Plaintiff,

v.

NICHOLAS BOWERMAN,

Defendant.

Case No. 24-cv-12282-AK

FINAL JUDGMENT

WHEREAS, on September 5, 2024, the plaintiff Securities and Exchange Commission

(“Commission”) commenced this action by filing a Complaint against Defendant Nicholas

Bowerman (“Bowerman” or “Defendant”);

WHEREAS, Defendant was personally served with a copy of the complaint and a

summons on September 17, 2024. See Doc. No. 5, 5-1.

WHEREAS, Defendant’s answer to the complaint was due by October 8, 2024. See Fed.

R. Civ. P. 12(a)(1)(A)(i). Defendant has not filed an answer, and no counsel has appeared on his

behalf or contacted the undersigned on Defendant’s behalf.

WHEREAS, the Commission filed a renewed request for entry of default as to Defendant

on December 19, 2024, for failure to answer or otherwise appear. See Doc. No. 8;

WHEREAS, in accordance with Fed. R. Civ. P. 55(a), a clerk’s Notice of Default was

entered against Defendant on January 13, 2025. See Doc. No. 10;

WHEREAS, the Court accepts as true the factual allegations of the Complaint against

Defendant, who has defaulted, and finds that the Court has jurisdiction over this action pursuant

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to Section 22(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77v(a)], and

Sections 27 of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78aa];

WHEREAS, the Commission has applied, pursuant to Fed. R. Civ. P. 55(b)(2), for the

entry of this Final Judgment based on Defendant’s failure to answer or otherwise respond to the

Commission’s Complaint, and the Court having considered the prima facie case for relief shown

by the Commission’s Complaint, the memorandum of law in support of the Commission’s

motion for default judgment, and the supporting Affidavits of Brian R. Higgins, supervisory staff

accountant in the enforcement division at the SEC, and Paul Caron, senior director of global

compensation at CIRCOR International, Inc. (“CIRCOR”), which showing has not been rebutted

by Defendant, the Court finds that Defendant has violated Sections 17(a) of the Securities Act;

and Sections 10(b), 13(a), 13(b)(2)(a),13(b)(2)(b), and 13(b)(5) of the Exchange Act, and Rules

10b-5(a) and (c), 13a-1, 13a-11, 13a-13, and 13b2-1 thereunder;

NOW THEREFORE, BASED ON THE FOREGOING:

I.

IT IS ORDERED that Defendant Nicholas Bowerman is in default and judgment is

awarded in favor of Plaintiff Securities and Exchange Commission against Defendant Nicholas

Bowerman;

II.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933

(the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any

means or instruments of transportation or communication in interstate commerce or by use of the

mails, directly or indirectly:

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(a) to employ any device, scheme, or artifice to defraud;

(b) to obtain money or property by means of any untrue statement of a

material fact or any omission of a material fact necessary in order to make

the statements  made, in light of the circumstances under which they were

made, not misleading; and

(c) to engage in any transaction, practice, or course of business which

operates or would operate as a fraud or deceit upon the purchaser;

by, directly or indirectly, (i) creating a false appearance or otherwise deceiving any person about

the price or trading market for any security, or (ii) making any false or misleading statement, or

disseminating any false or misleading documents, materials, or information, concerning matters

relating to a decision by an investor or prospective investor to buy or sell securities of any

company.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who

receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s

officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or

participation with Defendant or with anyone described in (a).

III.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is

permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the

Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Exchange Act

Rules 10b-5(a) and (c) [17 C.F.R. § 240.10b-5(a) and (c)], by using any means or instrumentality

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of interstate commerce, or of the mails, or of any facility of any national securities exchange, in

connection with the purchase or sale of any security:

(a) to employ any device, scheme, or artifice to defraud; and

(b) to engage in any act, practice, or course of business which operates or

would operate as a fraud or deceit upon any person;

by, directly or indirectly, (i) creating a false appearance or otherwise deceiving any person about

the price or trading market for any security, or (ii) making any false or misleading statement, or

disseminating any false or misleading documents, materials, or information, concerning matters

relating to a decision by an investor or prospective investor to buy or sell securities of any

company.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who

receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s

officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or

participation with Defendant or with anyone described in (a).

IV.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

is permanently restrained and enjoined from aiding and abetting violations of Section 13(b)(5) of

the Exchange Act [15 U.S.C. § 78m(b)(5)], and Rule 13b2-1 [17 C.F.R. § 240.13b2-1]

thereunder, by:

(a) knowingly circumventing or knowingly failing to implement a system of internal

accounting controls or knowingly falsifying any book, record or account

described in Section 13(b)(2) of the Exchange Act; and

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(b) directly or indirectly falsifying or causing to be falsified, any book, record or

account subject to Section 13(b)(2)(A) of the Exchange Act;

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who

receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s

officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or

participation with Defendant or with anyone described in (a).

V.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

is permanently restrained and enjoined from violating Section 13(a) of the Exchange Act [15

U.S.C. § 78m(a)] and Rules 13a-1, 13a-11, and 13a-13 thereunder [17 C.F.R. §§ 240.13a-1,

240.13a-11, and 240.13a-13] by knowingly providing substantial assistance to an issuer which

has a class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. §781],

or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. §

780(d)], that files annual, quarterly and periodic reports that are inaccurate or that fail to contain

material information necessary to make required statements, in light of the circumstances under

which they are made, not misleading.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who

receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s

officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or

participation with Defendant or with anyone described in (a).

VI.

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(a) in failing to make and keep books, records, and accounts, which, in reasonable

detail, accurately and fairly reflect the transactions and disposition of the

assets of the issuer; and

(b) in failing to devise and maintain a system of internal accounting controls

sufficient to provide reasonable assurances that transactions are recorded as

necessary (i) to permit preparation of financial statement in conformity with

generally accepted accounting principles or any other criteria applicable to

such statements; and (ii) to maintain accountability for assets;

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who

receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s

officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or

participation with Defendant or with anyone described in (a).

VII.

IT IS FURTHER ORDERED that, pursuant to Section 21(d)(2) of the Exchange Act [15

U.S.C. § 78u(d)(2)] and Section 20(e) of the Securities Act [15 U.S.C. § 77t(e)], Defendant is

prohibited from acting in an accounting or financial reporting role at a public company in

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

is permanently restrained and enjoined from violating Section 13(b)(2)(A) and (B) of the

Exchange Act [15 U.S.C. §§ 78m(b)(2)(A), (B)] by knowingly providing substantial assistance

to an issuer which has a class of securities registered pursuant to Section 12 of the Exchange Act

[15 U.S.C. §781], or that is required to file reports pursuant to Section 15(d) of the Exchange Act

[15 U.S.C. § 780(d)],

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connection with the preparation of financial statements filed with the Commission, providing

substantial assistance to a public company in the preparation of financial statements filed with

the Commission, or acting as an auditor on a public company audit.

For purposes of the conduct-based injunction, the following definitions apply: (i)

“Accounting or financial reporting role” means participating in the preparation of financial

statements; decisions about financial reporting; the creation or implementation of accounting

policies; or decisions about accounting treatment; and (ii) “Public company” means a company,

foreign or domestic, that files financial statements with the Securities and Exchange

Commission.

VIII.

IT IS FURTHER ORDERED that Defendant is ordered to pay disgorgement of

$17,823.80, as well as prejudgment interest thereon of $4,148.51, pursuant to Exchange Act

Sections 21(d)(3), 21(d)(5), and 21(d)(7) [15 U.S.C. §§ 78u(d)(3), 78u(d)(5), and 78u(d)(7)]. The

total amount of disgorgement and prejudgment interest is $21,972.31.

IX.

IT IS FURTHER ORDERED that Defendant is ordered to pay a civil penalty of $75,000

pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the

Exchange Act [15 U.S.C. § 78u(d)(3)].

XVIII.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain

jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.

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IT IS SO ORDERED

Entered this _____ day of ____________, 2025

__________________________________
Angel Kelley
United States District Court Judge

23rd December

/s/ Angel Kelley
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