Securities and Exchange Commission v. Chan
- Gregory Woods
- 1:19-cv-05718
- U.S. District Court · Southern District of New York
- 2
In Securities and Exchange Commission v. Chan, Judge Woods ordered supplemental briefing on civil-penalty calculations before deciding the SEC’s default-judgment motion.
The SEC must provide additional briefing and serve the order; the defendants are entitled to receive a copy of the order.
What happened
In Securities and Exchange Commission v. Chan, the Securities and Exchange Commission asked the court to enter a default judgment. The court found that the SEC’s filing did not provide enough information to calculate the appropriate civil penalties.
The court directed the SEC to submit additional briefing by January 31, 2020. The SEC must explain its preferred calculation method, proposed penalty amount, and supporting reasoning, including any necessary mathematical calculations. If more than one calculation method could apply, the SEC must address each applicable method or explain why alternatives do not apply.
Judge Gregory H. Woods did not decide the default-judgment motion or set any penalties in this order. He also directed the SEC to serve the order on the defendants and keep proof of service.
The detailed version
- Securities and Exchange Commission v. Chan · No. 1:19-cv-05718
- Gregory Woods
- Jan. 29, 2020
Background
The Securities and Exchange Commission moved for a default judgment against the defendants. In its supporting memorandum, the SEC did not provide enough information for the court to calculate the civil penalties that might apply.
Court’s Order
The court directed the SEC to file supplemental briefing by January 31, 2020. The SEC must explain its preferred method for calculating civil penalties, identify the proposed penalty amount, and explain why that amount is appropriate under the proposed method. The explanation must include mathematical calculations if necessary.
The court further directed the SEC, if multiple calculation methods could apply, either to calculate penalties under all applicable methods or to explain why alternative methods are inappropriate in this case. The SEC must serve a copy of the order on the defendants and retain proof of service.
Effect of the Order
This order does not grant or deny the SEC’s motion for default judgment and does not impose a civil penalty. Judge Gregory H. Woods required additional information before the court could determine the appropriate penalty amount.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.