SEC Obtains Judgment Against Steven Davis
The Securities and Exchange Commission (SEC) announced that on January 8, 2016, the United States District Court for the Southern District of New York entered a judgment against defendant Steven Davis. The judgment resolves all issues of liability against Davis arising from the SEC’s filing of a civil complaint against him on March 6, 2014. A permanent injunction against Davis was entered prohibiting him from future violations of certain SEC antifraud provisions of the federal securities laws and bars Davis from serving as an officer or director of a publicly traded company.
In its complaint, the SEC alleged that in 2008 and 2009, Davis, the chairman of Dewey & LeBoeuf, LLP, an international law firm, was aware of and supported efforts by employees and officers of Dewey & LeBoeuf to materially falsify the firm’s financial statements in order to meet certain covenants with its lenders. In 2010, Davis authorized Dewey & LeBoeuf to raise $150 million in a private placement and to provide Dewey & LeBoeuf’s fraudulent financial statements to investors in the private placement.
Davis consented to the entry of a judgment permanently enjoining him from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and prohibiting Davis from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d) of the Exchange Act. In addition, the judgment provides that the payment of disgorgement plus prejudgment interest, and the imposition of civil monetary penalties will be determined at a later date.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.