Attorney Resigns After Securities Consent Judgment
The Oklahoma Supreme Court has accepted an attorney’s resignation
The United States Securities and Exchange Commission filed a complaint in federal court against Respondent, claiming violations of various securities laws. Specifically, the complaint alleged that Respondent made materially false and misleading statements to investors in an offering memorandum and press releases, and misappropriated the proceeds of the offering by spending investor funds on personal expenses and paying a third-party. On September 16, 2022, Respondent consented to the entry of a final partial judgement without admitting or denying the allegations of the complaint. On March 10, 2023, the U.S. District Court entered a final judgment enjoining Respondent from violation of certain security laws as well as enjoining him from providing legal services to any person or entity in connection with the offer or sale of securities. The final judgment also ordered Respondent to disgorge $438,103.21 and pay a civil penalty of $333,110.00. Respondent appealed the final judgment on May 4, 2023.
Resignation is tantamount to disbarment
Respondent recognizes, understands, and agrees that he may not apply for reinstatement of his license to practice law (and of his membership in the Bar) before the expiration of five years from the effective date of this Order. Respondent further acknowledged that his license to practice law may be reinstated only upon full compliance with the conditions and procedures prescribed by Rule 11 of the RGDP.
Respondent affirmed that potential claims against the Client Security Fund may arise and if the OBA approves/pays any such claims, Respondent will reimburse the Fund in the principal amounts together with applicable statutory interest prior to seeking reinstatement. Additionally, Respondent has been ordered by the United States District Court for the Western District of Texas to pay sums associated with violation(s) of federal securities laws in the amount of $771,213.21 (although such judgment is currently the subject of an appeal in the Fifth Circuit Court of Appeals)
The SEC complaint is linked here. (Mike Frisch)