More Problems for Robert Craddock

We have 2 Orders entered by the District of Nevada against Fun Club USA and its figurehead, Robert Craddock; the first is an ORDER to show cause:

This matter is before the Court on Defendant Fun Club USA, Inc.’s failure to retain new
counsel. This Court’s Order (#23) gave Defendant until August 25, 2014 to retain new counsel.
To date, the Defendant has not complied. Accordingly,

IT IS ORDERED that Defendant Fun Club USA, Inc. shall show cause, in writing, no later
than October 6, 2014, why sanctions should not be imposed for the failure to comply with this
Court’s prior order. Failure to timely respond to this Order to Show Cause may result in the
imposition of sanctions up to and including a recommendation to the District Judge to strike
Defendant’s Answer and enter a default judgment against Defendant for violation of the Court’s
order.

And, surprise, surprise, Fun Club USA did not comply with that Court ORDER, so there’s this:

FINDINGS AND RECOMMENDATION AND  ORDER

This matter is before the Court on the Order to Show Cause (#25), filed September 24,
2014, wherein this Court ordered Defendant Fun Club USA, Inc. to show cause, in writing, no later
than October 6, 2014, why sanctions should not be imposed for its failure to comply with this
Court’s prior order (#23) to retain counsel. To date, Defendant Fun Club USA, Inc. has failed to
comply. Accordingly,

RECOMMENDATION
IT IS RECOMMENDED by the undersigned United States Magistrate Judge that the
Answer of Defendant Fun Club USA, Inc. should be stricken and its default entered based on
Defendant’s failure to comply with this Court’s Order to obtain counsel.

ORDER
IT IS HEREBY ORDERED that the Clerk of the Court shall mail a copy of this Findings
& Recommendation and Order to Defendant Fun Club USA, Inc., c/o Robert Craddock, xxxx
Baron Court, Port Orange, Florida 32128.

SEC Press Release, October 16, 2014

SEC’s FY 2014 Enforcement Actions Span Securities Industry and Include First-Ever Cases

New Investigative Approaches and Innovative Use of Data and Analytical Tools Help Drive Successful Enforcement Year

FOR IMMEDIATE RELEASE
2014-230

Washington D.C., Oct. 16, 2014 —The Securities and Exchange Commission today announced that in fiscal year 2014, new investigative approaches and the innovative use of data and analytical tools contributed to a very strong year for enforcement marked by cases that spanned the securities industry.

In the fiscal year that ended in September, the SEC filed a record 755 enforcement actions covering a wide range of misconduct, and obtained orders totaling $4.16 billion in disgorgement and penalties, according to preliminary figures.  In FY 2013, the Commission filed 686 enforcement actions and obtained orders totaling $3.4 billion in disgorgement and penalties.  In FY 2012, the Commission filed 734 enforcement actions and obtained orders totaling $3.1 billion in disgorgement and penalties.

The agency’s enforcement actions also included a number of first-ever cases, including actions  involving the market access rule, the “pay-to-play” rule for investment advisers, an emergency action to halt a municipal bond offering, and an action for whistleblower retaliation.

“Aggressive enforcement against wrongdoers who harm investors and threaten our financial markets remains a top priority, and we brought and will continue to bring creative and important enforcement actions across a broad range of the securities markets,” said SEC Chair Mary Jo White.  “The innovative use of technology – enhanced use of data and quantitative analysis – was instrumental in detecting misconduct and contributed to the Enforcement Division’s success in bringing quality actions that resulted in stiff monetary sanctions.”

“Time and again this past year, the Division’s staff applied its tremendous energy and talent, uncovered misconduct, and held accountable those who were responsible for wrongdoing,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement.  “I am proud of our excellent record of success and look forward to another year filled with high-impact enforcement actions.”

In addition to the first-ever cases, Chair White noted that the Municipalities Continuing Disclosure Cooperation (MCDC) Initiative was an important effort that began in the last fiscal year.  The SEC reached a settlement with a California school district for charges of misleading bond investors, making it the first settlement under the initiative targeting municipal disclosure.

Director Ceresney added that, going forward, the Enforcement Division will continue to bring its resources to bear across the entire spectrum of the financial industry, from complex accounting fraud and market structure cases, to investment adviser and municipal securities cases, microcap fraud, insider trading, and cases against gatekeepers.

SEC Enforcement in Fiscal Year 2014

Combatting Financial Fraud and Enhancing Issuer Disclosure

To read the full Press Release, click here.