Federal Trade Commission v. Alaska Land Leasing, Inc., and Sheldon Jaffe, Receiver/appellee v. Malcolm Kelso and Gregory Wilson

Appellants Malcolm Kelso and Gregory F. Wilson appeal from an order in which the district court imposed sanctions against them for multiplicitous litigation under 28 U.S.C. § 1927 . Wilson argues that his due process rights were violated because he was not given notice before the sanctions were imposed. Kelso argues that § 1927 sanctions cannot be ordered against him because he is a non-attorney and not otherwise admitted to practice before the court. Kelso and Wilson further submit that on the merits the district court erred in ordering sanctions against them. We vacate the district court’s judgment and remand. FACTS

On July 23,1984, the Federal Trade Commission (FTC) filed a complaint for injunc-tive and other equitable relief against defendants Alaska Land Leasing (ALL), Federal Lease Filing Corporation (FLFC), Anchorage Research and Management Company, Tundra Oil, Inc., David Kane and other individual defendants. The FTC alleged, inter alia, that during the course of selling oil and gas leases, defendants falsely represented the potential for finding oil and gas in the leased areas.

Pursuant to an FTC request, the district court appointed Sheldon Jaffe permanent receiver…