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Denver U.S. judge rejects SEC settlement language in terms similar to Rakoff

Jan 24 2013 Stuart Gittleman, Compliance Complete

A Denver federal judge has rejected a proposed Securities and Exchange Commission settlement in which a defendant neither admits nor denies the SEC's allegations without giving any pertinent details. The judge, John L. Kane, has joined another federal judge in rejecting the SEC's standard settlement language. The decision by the other judge, Jed Rakoff of Manhattan, in a case against Citibank over debt securities, has been jointly appealed by the SEC and Citi, and is scheduled for argument on February 8. "I refuse to approve penalties against a defendant who remains defiantly mute as to the veracity of the allegations against him," Kane wrote last Thursday in rejecting a deal between the SEC and Bridge Premium Finance LLC and its principals. Kane did not, however, rule out considering a revised proposed settlement. The SEC in a federal court complaint filed August 14, 2012 alleged that the defendants purportedly raised funds to help businesses finance their insurance premiums

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