By: dmc-admin//February 11, 2002//
“The purpose of the SEC’s initial proceeding, investigating the securities law violations of Lauer, Senffner, and CCI, was not solely to investigate those violations for the sake of exposing them, but also to identify and recover CHA funds involved in the violations to remedy them. More to the point, that proceeding did not end by virtue of the filing of the lawsuit. To the contrary, the SEC prosecution of the lawsuit was a natural extension of that proceeding, and its efforts to recover and return the funds were necessary to achieve its goal. By obstructing the recovery of CHA funds, Senffner obstructed the district court, and, as a consequence, the SEC’s initial investigation and enforcement of securities law violations (an SEC proceeding), which sought the return of the funds.”
Affirmed.
Appeal from the United States District Court for the Northern District of Illinois, Lindberg, J., Williams, J.