An unauthorized collection of the records of Alternate Energy Holdings, inc., its principals and subsidiaries, and their antics, trials, and tribulations

Former AEHI CEO Don Gillispie

Former AEHI CEO Don Gillispie
OK, everyone, I've got to step out for just a minute. I'll be right back, I promise!

Wednesday, December 3, 2014

Federal Court Order Granting SEC Final Judgment Motion against Don Gillispie and Alternate Energy Holdings: Permanent Injunction, Disgorgement, and Civil Penalties!

U.S. District Judge Ed Lodge today issued a 13-page order granting the Securities and Exchange Commission's Motion for Final Judgment: (See also the accompanying declaration and 20-page Memorandum in Support of the motion)

Highlights of the most excellent document: (emphasis added)

"The Court … agrees that a permanent injunction is appropriate in this case as the Defendants are likely to commit future securities law violations."

"The Defendants' violations of the securities laws included repeated and multiple acts spanning several years.  Their activities included providing false, misleading, and unaccurate material information in several public announcements issued in connection to securities offerings."

"The Defendants were evasive in their conduct even after this action was filed showing little sincerity or recognition of the wrongfulness of the conduct." (all on page 3 of the Order)

"The Court finds disgorgment is warranted in this case as it will deprive the wrongdoers of unjust enrichment from the ill-gotten gains and serve to deter others from violating securities laws by making violations unprofitable." (p. 5)

"The SEC asks the Court to impose the highest level penalty, third tier, arguing the Defendants' conduct in this case involved fraud or deceit…"   "Having reviewed the record in this matter, the Court finds the securities violations are such that the Defendants are subject to third tier penalties.  The Defendants actions here involved fraud, deceit, manipulation, or deliberate and/or reckless disregard of a regulatory requirement.  The Defendants engaged in a scheme of illegal offerings of securities to numerous public investors using misleading information."

"The Court finds a penalty of $75,000.00 is appropriate.  Defendant Gillispie was centrally involved in the recurrent securities violations which this Court has already concluded were done with the requisite degree of scienter.  Additionally, Defendant Gillispie's conduct suggests little recognition of the wrongful nature of his conduct and/or sincerity of any assurances he may make against future violations. "

"4.  Defendants AEHI and Donald L. Gillispie, and each of them, are jointly and severally liable for disgorging ill-gotten gains of $14,567,030 together with prejudgment interest thereon in the amount of $245,036, for a total disgorgment of $14,812,066.  Defendants shall make payment of the total amount within thirty (30) days of the date of this order."

5.  Defendant Donald L. Gillispie shall pay a civil penalty in the amount of $75,000 … within thirty business days after entry of this Final Judgment…"

6.  Defendant AEHI shall pay a civil penalty in the amount of $300,000

7.  Defendant Donald L. Gillispie is permanently prohibited as of the date of entry of this Order from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exhcange Act…

8.  Defendand Donald L. Gilispie is permanently barred … from participating in an offering of penny stock….

Four years ago, we presented a graph of selected word occurrences in the SEC Complaint.
Here is an updated graph of certain words in the Final Judgment:

Next up:  how will they pay?  And more importantly,

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