Donald V. Watkins, Sr., et al. (Release No. LR-24196; Jul. 12, 2018)
Litigation Release No. 24196 / July 12, 2018
Securities and Exchange Commission v. Donald V. Watkins, Sr., et al., No. 1:16-cv-3298-SCJ (N.D.Ga.) (filed September 1, 2016)
The Court ruled that the SEC was entitled to summary judgment on its fraud claims based on several investments made by a former NBA player in promissory notes totaling $2,150,000. The Court found that, when selling the notes, Watkins (1) misrepresented that he and his companies would use the investor's money for specific projects of their waste-to-energy business; and (2) intended to deceive the investor, in that Watkins, upon receiving the funds, promptly used them to repay another investor and to pay various personal expenses, such as alimony and back taxes.
In addition to the claims with respect to the former NBA player, the SEC's complaint alleges that Watkins and his companies defrauded other investors. The SEC did not move for summary judgment as to those claims, and they have yet to be decided. The Court will determine the remedies for the violations for which it granted summary judgement at a later time.
The SEC is represented by Joshua Mayes, Paul Kim and M. Graham Loomis of the Atlanta Regional Office in this litigation.
See also Litigation Release 23634.