Securities and Exchange Commission v. Bronson
- Kenneth Karas
- 7:12-cv-06421
- U.S. District Court · Southern District of New York
- 11
In SEC v. Bronson, Judge Karas issued a continuing writ directing Wells Fargo to withhold Edward Bronson’s nonexempt property for an unpaid judgment.
The order directly affects Wells Fargo Bank, N.A., which must withhold qualifying nonexempt property of Edward Bronson, and the SEC, which seeks to collect the unpaid judgment. It also affects Edward Bronson by subjecting qualifying property and earnings to garnishment.
What happened
In Securities and Exchange Commission v. Bronson, the SEC asked the Southern District of New York to issue a post-judgment writ of garnishment to collect amounts owed under a 2017 final judgment against Edward Bronson. Wells Fargo Bank, N.A. was the garnishee—the bank directed to identify and hold property belonging to Bronson.
The writ states that $9,964,670.09 in joint-and-several disgorgement and prejudgment interest remained outstanding as of September 2, 2022. It also lists post-judgment interest at 1.23 percent as of September 6, 2022, and states that the penalty had been satisfied.
The court issued the continuing writ. Judge Kenneth Karas directed Wells Fargo to withhold and retain Bronson’s nonexempt property, including qualifying future property and nonexempt disposable earnings, and warned that failure to comply could result in contempt or other sanctions.
The detailed version
- Securities and Exchange Commission v. Bronson · No. 7:12-cv-06421
- Kenneth Karas
- Sept. 20, 2022
Background
The SEC applied for a post-judgment writ of garnishment under Rule 69 of the Federal Rules of Civil Procedure and applicable New York law. The writ identifies Edward Bronson, E-Lionheart Associates, LLC doing business as Fairhills Capital, and Fairhills Capital, Inc. as the parties identified in the caption. Wells Fargo Bank, N.A. is the garnishee—the entity directed to withhold property.
The writ refers to an August 28, 2017 final judgment and states that the judgment included disgorgement, prejudgment interest, and a penalty. It reports that joint-and-several disgorgement and interest totaling $9,964,670.09 remained outstanding as of September 2, 2022. The listed interest rate was 1.23 percent as of September 6, 2022. The writ states that the penalty had been satisfied.
Court’s Action
After reviewing the SEC’s application, the court issued the post-judgment writ. It directed Wells Fargo, pending further order, to withhold and retain any property in its possession, custody, or control in which Bronson had an interest when the writ was served or might acquire an interest later. This included Bronson’s nonexempt disposable earnings. The writ is continuing, meaning the withholding obligation can apply to qualifying property obtained in the future. The writ warns that Wells Fargo could face contempt or other sanctions if it fails to comply.
The attached instructions describe limits on withholding earnings under federal law, including a general maximum based on 25 percent of disposable weekly earnings or the amount above 30 times the federal minimum wage, whichever is less. They also explain that Bronson could object to the garnishee’s answer or seek a reduction by notifying the court clerk and the SEC in writing within ten days after receiving the notice. The opinion text does not decide the underlying securities claims; it addresses collection of the existing judgment.
Read the full 11-page opinion on CourtListener, the free public archive maintained by the Free Law Project.