Imprisonment isn’t an appropriate civil contempt sanction against an alleged fraudster who failed to pay the SEC under an earlier order because the defendant lacks access to the money, a federal court ruled.
At issue is Red Rock Secured LLC account executive Anthony Spencer’s noncompliance with a February contempt order requiring him to pay the Securities and Exchange Commission $1 million within 15 days. It’s “undisputed” that Spencer’s trust has the assets, but there’s no indication he has access to the trust, Judge R. Gary Klausner said Tuesday for the US District Court for the Central District of California.
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