Fed. Sec. L. Rep. P 97,588 Securities and Exchange Commission v. Stephen Murphy

Stephen Murphy appeals from a district court decision permanently enjoining him from violating the registration and anti-fraud provisions of the securities laws and requiring him to mail copies of the court’s order to present and future business associates and investors. The court first granted summary judgment for the SEC on the registration violations; then, after a trial on the fraud counts in which defendant put on no evidence, the court entered judgment for the SEC on those counts. Murphy contends that there were disputed material facts which made the grant of summary judgment improper and that the entry of that judgment invalidated the fraud judgment as well. He also argues that the court erred in granting an injunction against registration violations without hearing testimonial evidence and that the court deprived him of due process when it denied his Fed.R.Civ.P. 41(b) motion for dismissal. We affirm.

I. FACTS AND PROCEEDINGS BELOW

Stephen Murphy formed Intertie, a California company that provided financing, construction, and management of cable television systems, in December, 1971, and he was its president and director until February, 1974, when he became…