Securities — sanctions

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United States Court of Appeals For the Seventh Circuit

Civil

Securities — sanctions

A $600,000 remedial sanction for delays in complying with an appointed receiver is reasonable.

“SonCo argues that the district judge denied it due process by failing to grant its request for an evidentiary hearing on remand. But as the judge explained, there was no need for such a hearing. ‘The due process clause does not require a hearing…where there is no disputed issue of material fact to resolve.’ Wozniak v. Conry, 236 F.3d 888, 890 (7th Cir. 2001). The $600,000 sanction was based on evidence of the costs caused by SonCo’s delay that had been presented earlier in this protracted proceeding (now in its thirteenth year). While insisting that it was not in contempt, SonCo had presented no evidence contesting the receiver’s $600,000 estimate of the costs imposed by its dilly-dallying, despite being given multiple opportunities by the district judge to do so.”

Affirmed.

12-3308 SEC v. First Choice Management Services, Inc.

Appeal from the United States District Court for the Northern District of Indiana, Miller, J., Posner, J.