SEC Obtains Final Judgment Requiring Jeffrey Mowen to Pay More Than $18 Million

SEC v. Jeffrey L. Mowen, et al., Case No. 2:09-cv-00786-DB/PMW (D. Utah).  On August 27, the SEC announced it obtained a final judgment against Jeffrey L. Mowen, ordering Mowen to disgorge $8,041,779 and $1,964,203.67 in prejudgment interest.  The Court also ordered Mowen to pay a civil monetary penalty of $8,041,779.  The Court enjoined Mowen from future violations of Section 10(b) of the Securities Exchange Act and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act.  Mowen operated a Ponzi scheme that was fed through money raised by another defendant, Thomas Fry.  Fry raised money through promoters by selling high-yield promissory notes.  The scheme raised over $40 million.  Mowen never invested the funds, instead taking more than $8 million for himself.  Mowen previously pled guilty to related criminal charges and is currently serving a ten-year prison sentence.  The SEC obtained a final judgment ordering disgorgement and penalties against Fry and several of his promoters on June 15, 2012.



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