South Florida Arbitration & Litigation Lawyer Blog
In the Matter of Candice D. Campbell:
August, 2012:
The Securities and Exchange Commission recently announced the issuance of an Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940 (Order) against Candice D. Campbell (Campbell).
In the Order, the Division of Enforcement alleges that beginning in or before April 2009 through August 2010, Campbell was the purported CFO of CJ’s Financial (“CJF”), an unincorporated so-called “investment firm” located in Canton, Michigan. The Order also alleges that on July 20, 2011, the United States Attorney for the Eastern District of Michigan filed a first superseding criminal information against Campbell, charging her with one count of wire fraud. United States v. Campbell, 2:11-cr-20388 (E.D. Mich.). That action involves the same conduct previously alleged in a complaint filed by the Commission in August 2010. SEC v. C.J.’s Financial and Candice Campbell, 2:10-cv-13083 (E.D. Mich.). Moreover, the Order alleges that on January 23, 2012, Campbell pleaded guilty to one count of wire fraud, and was sentenced to 51 months in prison and ordered to pay restitution in the amount of $835,474.10. United States v. Campbell, 2:11-cr-20388 (E.D. Mich.) (Docket No. 15). The Order also alleges that by pleading guilty in the criminal case, Campbell admitted that, as the owner and controller of CJF, she: (i)”devised a scheme to defraud in order to obtain money or property as described in the first superseding information,” (ii) the “scheme included a material misrepresentation or concealment of a material fact,” (iii) she “had the intent to defraud,” and (iv) she “used wire, radio or television communications … in interstate commerce in furtherance of the scheme.”
Previously on August 4, 2010, the Commission filed an action in the United States District Court for the Eastern District of Michigan, alleging that Campbell and CJF violated Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act. SEC v. C.J.’s Financial and Candice Campbell, 2:10-cv-13083 (E.D. Mich.). At the SEC’s request for emergency relief, the court issued a temporary restraining order (“TRO”) against Campbell and CJF and an order freezing all assets under the control of Campbell and CJF, in addition to granting other emergency relief.
A hearing will be scheduled before an Administrative Law Judge to determine whether such allegations are true, to afford Campbell an opportunity to establish defenses to the allegations, and to determine whether remedial action is necessary and appropriate. The Administrative Law Judge is directed to issue a decision no later than 210 days from the date of service of the Order Instituting Proceedings, pursuant to Rule 360(a)(2) of the Commission’s Rules of Practice. (Rel. IA-3450; File No. 3-14997).
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