2022-08-19 sec-litreleases litigation_release 65 KB 1,515 chars

SEC v. Jonathan Dax Cooke, No. LR-25479, Northern District of Georgia (Aug. 19, 2022) — Press Release

raw: Jonathan Dax Cooke, et al.

Jonathan Dax Cooke, et al., No. 1:17-cv-02873-JSA (Aug. 19, 2022)

Caption
Securities and Exchange Commission v. Jonathan Dax Cooke, et al.
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summary

Former broker Jonathan Dax Cooke was ordered to pay over $500,000 in penalties after being found liable for defrauding federal employees through high-fee variable annuities.

paragraph

Jonathan Dax Cooke was found liable for defrauding hundreds of federal employees by persuading them to liquidate Thrift Savings Plan accounts for high-fee variable annuities. The court imposed a $396,409 disgorgement and a $103,591 civil penalty against him. Cooke faces injunctions for violating antifraud provisions and is barred from serving as an officer or director of certain publicly-held companies.

narrative

The U.S. District Court for the Northern District of Georgia entered a final judgment against former broker Jonathan Dax Cooke for defrauding hundreds of federal employees. Cooke persuaded these employees to liquidate their Thrift Savings Plan accounts to purchase variable annuities that carried significantly higher fees and generated substantial commissions for himself. Following a jury verdict in favor of the SEC on all counts, Cooke was ordered to pay $396,409 in disgorgement and a $103,591 civil penalty. The judgment also includes an injunction against violating antifraud provisions and bars him from serving as an officer or director of certain publicly-held companies. While Cooke went to trial, three other individual defendants in the litigation settled their cases beforehand. The SEC litigation was led by attorneys Kristin W. Murnahan, William P. Hicks, and M. Graham Loomis.

Enriched metadata

Scheme
broker-dealer-fraud (97%)
Court
Northern District of Georgia
Case No.
1:17-cv-02873-JSA
Disgorgement
$396,409
Civil penalty
$103,591
Entity
Jonathan Dax Cooke
Classified broker-dealer-fraud(confidence 97%). EDGAR detection: forms Form D· recall 29% / precision 9%. detection rule →
Statutes
Section 10(b) of the Securities Exchange ActSection 17(a) of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionJonathan Dax Cooke
Keywords
cookejonathandaxexchangeformer brokerfederal employeessecurities exchangenorthern georgiavariable annuitiesfinalagainstformerlitigationsecuritiessec

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 2
  • $396K $396,409 $100K–$1M
  • $104K $103,591 $100K–$1M
Entities 9
  • person before trial
  • person final judgment
  • agency in favor of the sec on all counts against cooke
  • person jonathan dax cooke
  • agency sec's litigation
  • agency Securities and Exchange Commission
  • person significantly higher fees
  • court u.s. district court for the northern district of georgia
  • person variable annuities
Triples 11
  • SEC obtains final judgment against Jonathan Dax Cooke
  • U.S. District Court For The Northern District Of Georgia entered final consent judgment against Jonathan Dax Cooke
  • Jonathan Dax Cooke persuaded hundreds of current and former federal employees to liquidate their Thrift Savings Plan accounts
  • Variable Annuities charged significantly higher fees
  • Variable Annuities provided Cooke with substantial commissions
  • Three Other Individual Defendants settled before trial
  • Jury ruled in favor of the SEC on all counts against Cooke
  • Final Judgment enjoins Cooke from violating antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 and Section 17(a) of the Securities Act of 1933
  • Final Judgment bars Cooke from serving as an officer or director of certain publicly-held companies
  • Final Judgment orders Cooke to pay disgorgement of $396,409 and a civil penalty of $103,591
  • SEC's Litigation was led by Kristin W. Murnahan, William P. Hicks, and M. Graham Loomis
PDF (from attached: judgment)
SEC v. KEystone CAPITAL PARTNERS · Source
Text layers
Extracted body text (1,515c) 
SEC Obtains Final Judgment Against Former Broker Found Liable for Defrauding Federal Employees Litigation Release No. 25479 / August 19, 2022 Securities and Exchange Commission v. Jonathan Dax Cooke, et al., No. 1:17-cv-02873-JSA (N.D. Ga. filed July 31, 2017) The U.S. District Court for the Northern District of Georgia today entered a final consent judgment against Jonathan Dax Cooke, a former broker accused of fraudulently persuading hundreds of current and former federal employees to liquidate their Thrift Savings Plan accounts in order to purchase variable annuities. The variable annuities charged significantly higher fees and provided Cooke with substantial commissions. The three other individual defendants named in this litigation settled before trial. On March 22, 2022, the jury in the Northern District of Georgia ruled in favor of the SEC on all counts against Cooke. The final judgment (a) enjoins Cooke from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933, and from aiding and abetting violations of the broker-dealer books and records provisions of Section 17 of the Exchange Act; (b) bars Cooke from serving as an officer or director of certain publicly-held companies; and (c) orders Cooke to pay disgorgement of $396,409 and a civil penalty of $103,591. The SEC's litigation was led by Kristin W. Murnahan, William P. Hicks, and M. Graham Loomis. Judgment
OCR text (1,515c · html-text · 99% conf) 
SEC Obtains Final Judgment Against Former Broker Found Liable for Defrauding Federal Employees Litigation Release No. 25479 / August 19, 2022 Securities and Exchange Commission v. Jonathan Dax Cooke, et al., No. 1:17-cv-02873-JSA (N.D. Ga. filed July 31, 2017) The U.S. District Court for the Northern District of Georgia today entered a final consent judgment against Jonathan Dax Cooke, a former broker accused of fraudulently persuading hundreds of current and former federal employees to liquidate their Thrift Savings Plan accounts in order to purchase variable annuities. The variable annuities charged significantly higher fees and provided Cooke with substantial commissions. The three other individual defendants named in this litigation settled before trial. On March 22, 2022, the jury in the Northern District of Georgia ruled in favor of the SEC on all counts against Cooke. The final judgment (a) enjoins Cooke from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933, and from aiding and abetting violations of the broker-dealer books and records provisions of Section 17 of the Exchange Act; (b) bars Cooke from serving as an officer or director of certain publicly-held companies; and (c) orders Cooke to pay disgorgement of $396,409 and a civil penalty of $103,591. The SEC's litigation was led by Kristin W. Murnahan, William P. Hicks, and M. Graham Loomis. Judgment

Related documents (1)