SEC DISMISSED CLAIMS IN CIVIL FRAUD CASE IN LIEU OF PARALLEL CRIMINAL CONVICTION

The following excerpt is from the SEC website: September 26, 2011 “The Securities and Exchange Commission has voluntarily dismissed its claims for disgorgement, prejudgment interest, and civil penalties against former Jefferson County, Alabama Commission president Larry Langford. The Commission dismissed its claims against Langford due to the 15-year prison sentence and significant restitution and forfeiture orders entered against Langford in a parallel criminal case that arose out of the Commission’s investigation. The Eleventh Circuit Court of Appeals recently upheld the criminal sentence, which included orders to pay $119,985 in restitution to the Internal Revenue Service and forfeit $241,843.65 in benefits he received to the government. Following the Commission’s dismissal notice, the Honorable Abdul K. Kallon, United States District Judge for the Northern District of Alabama dismissed the claims against Langford and dismissed the now-completed case. The Commission’s complaint against Langford alleged he accepted approximately $156,000 in cash, loans, and other benefits in exchange for steering County bond and swap business to a long-time friend and local broker dealer. On August 8, 2011, the Court granted the Commission’s motion for summary judgment against Langford and permanently enjoined him from further violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5.”