Securities and Exchange Commission v. Genovese
- John Koeltl
- 1:18-cv-00942
- U.S. District Court · Southern District of New York
- 2
SEC v. Genovese: Judge Moses gave Genovese until November 19, 2020, to respond, warning that missing the deadline could lead to default.
Nicholas J. Genovese, who was representing himself, received a new deadline and a copy of the complaint; the SEC could seek default-related relief if he failed to respond.
What happened
The Securities and Exchange Commission sued Nicholas J. Genovese and other defendants. Genovese had received extensions to respond to the complaint but had not filed an answer or other response by the extended deadline. He said he lacked a copy of the complaint because prison officials had destroyed it, although the court noted that his earlier requests to the court did not mention that issue.
The court ordered the Clerk to mail Genovese a copy of the complaint and a guide explaining how to file an answer. The court also explained that an answer must admit or deny each factual allegation, or state when the defendant lacks enough information to do so.
Judge Barbara Moses gave Genovese until November 19, 2020, to file an answer or other response. She warned that failing to meet the deadline could lead to sanctions, a certificate of default, or a request for a default judgment; the order did not decide the SEC’s claims.
The detailed version
- Securities and Exchange Commission v. Genovese · No. 1:18-cv-00942
- John Koeltl
- Oct. 20, 2020
Background
The Securities and Exchange Commission brought this action against Nicholas J. Genovese and other defendants. The defendants were served with the complaint on April 11, 2018. The case was then stayed for almost two years while a parallel criminal case against Genovese proceeded. After the stay ended, Genovese obtained two extensions to answer or otherwise respond to the complaint. The second extension set an October 9, 2020 deadline and warned that failing to respond could result in sanctions, a certificate of default, or a motion for default judgment.
Genovese filed a notice of appeal from the September 22, 2020 order and moved to stay that order. The court denied the stay motion on October 19 and allowed the SEC to seek certificates of default. The same day, the Pro Se Office received a letter from Genovese stating that the Bureau of Prisons had destroyed his copy of the complaint during a search and that he had requested another copy from the Clerk. The court noted that Genovese’s earlier extension request and earlier letter to the court did not mention the loss of the complaint or the search. The electronic docket also did not show a request for a copy of the complaint, although the court mailed him a copy of the docket sheet on October 14.
Order
Because Genovese was representing himself, the court stated that it must read his filings liberally, meaning it must interpret them generously. The court also stated that it was not required to wait indefinitely for him to file a response.
The court ordered the Clerk to mail Genovese the order, a copy of the complaint, and the publication titled “How to File an Answer.” It ordered Genovese to file an answer or other response no later than November 19, 2020. The court explained that an answer must admit or deny each factual allegation, fairly respond to the substance of each allegation, or state when the defendant lacks sufficient knowledge or information to admit or deny it. The court further warned that lack of discovery from the SEC would not be an acceptable reason to deny allegations within Genovese’s personal knowledge or matters about which he otherwise had enough information to respond.
Result and significance
The order set a new response deadline and provided Genovese with another copy of the complaint. It did not rule on the SEC’s underlying claims or enter a default judgment. It warned that failure to respond by November 19 could lead to sanctions, a certificate of default, or a motion for default judgment. The opinion is signed by Barbara Moses, United States Magistrate Judge.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.