United States Seventh Circuit

In a civil enforcement action by the SEC, judgment of contempt for violating a freeze order and sanctions for failure to comply with discovery requests are affirmed where: 1) two non-parties' knowing violation of a freeze order subjected them to the contempt jurisdiction of the court; 2) the district court correctly determined that the receiver had proved contempt by clear and convincing evidence; and 3) the court did not err in exercising jurisdiction over another non-party, entering default judgment against the party as a sanction for discovery transgressions, and appointing a receiver over the non-party's assets.

Appellate Information

• Decided 01/24/2008
• Published 01/24/2008

Judges

• RIPPLE, Circuit Judge., Before RIPPLE, MANION and WOOD, Circuit Judges.

Court

• United States Seventh Circuit

Counsel

• For Appellees:
  
• Steven J. Levine, Securities and Exchange Commission, Chicago, IL, for Plaintiff-Appellee., Douglas W. Vanessen (argued), Stenger & Stenger, Grand Rapids, MI, for Intervenor-Appellee., Steven L. Baron (argued), Brendan J. Healey, Mandell & Menkes, David B. Goroff (argued), Foley & Lardner, Chicago, IL, for Non-Party Respondents-Appellants., Phillip S. Stenger, Stenger & Stenger, receiver, Intervenor-Appellee.