John Gardner Black, IA Act Rel. 3040, June 18, 2010
Black was barred from any industry association in a settlement and the Commission denied his earlier motion to vacate his IA bar, but did vacate the broker-dealer and municipal securities dealer bars he had agreed to. The earlier order is here.
The previous sanctions were the result of Black's consent to an injunction involving fraud allegations where the victims were Pennsylvania school districts. He was ordered to pay $4 million of disgorgement and prejudgment interest and a $500,000 penalty. In a related criminal case he was ordered to pay $61 million in restitution and sentenced to 41 months imprisonment. The opinion does not state whether Black has paid these sums.
The Commission considers reconsideration of its orders to be an extraordinary remedy designed to correct manifest errors of fact or law or to deal with newly discovered evidence. Black made no such showing here. He may not use these proceedings to challenge the factual allegations in the injunctive action.
