U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20985 / April 3, 2009

Securities and Exchange Commission v. Spear & Jackson, Inc., et al, Case No. 04-CIV-80354-Middlebrooks/Johnson (S.D. Fla.)

The Securities and Exchange Commission announced that on March 20, 2009, the Honorable Linnea R. Johnson, United States Magistrate Judge for the Southern District of Florida, entered an order modifying a previous order holding Kermit Silva in contempt of court for failing to pay a disgorgement and prejudgment interest judgment entered against him. The March 20 order reduced the payments Silva is required to make to satisfy the judgment against him to $500 a month from the previous $2,000 a month. In addition, Silva must submit affidavits documenting his employment and financial status on July 15, 2009 and every ninety days thereafter.

Judge Johnson had entered a final judgment against Silva, by consent, on September 29, 2005, requiring him, among other things, to pay $336,307 in disgorgement, $23,952 in prejudgment interest, and a $60,000 civil penalty in three installments. When Silva failed to make all of the required payments, the Court on October 23, 2007 found Silva in contempt and ordered him to make monthly payments of $2,000 towards satisfying the disgorgement and prejudgment interest portion of the final judgment.

When Silva ceased making those payments, the Court held a hearing on March 11, 2009 to determine whether to impose further sanctions against Silva for violating the October 23, 2007 order. The Court did not impose further sanctions against Silva and determined because of his current financial situation to reduce his monthly payments to $500.

For more information on earlier actions in this case, see LR-18668 (April 16, 2004), LR-19072 (Feb. 10, 2005), LR-19415 (Oct. 5, 2005), LR-20347 (Oct. 25, 2007).