UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF OHIO

WESTERN DIVISION

 

UNITED STATES SECURITIES )

AND EXCHANGE COMMISSION, )

)

Plaintiff, )

 ) CASE NO. 1:01-cv-116

v. )

) Judge Sandra S. Beckwith

STEPHEN G. DONAHUE and )

DONAHUE SECURITIES, INC., )

)

Defendants. )

____________________________________)

ORDER GRANTING PLAINTIFF SECURITIES AND EXCHANGE COMMISSION’S

MOTION TO SET AMOUNT OF DISGORGEMENT, DISTRIBUTE RECEIVERSHIP

ASSETS AND DISMISS CERTAIN CLAIMS

This matter is before the Court on Plaintiff United States Securities and Exchange

Commission’s (“Commission”) Motion to Set Amount of Disgorgement, Distribute Receivership

Assets and Dismiss Certain Claims. The Court, having considered the Plaintiff’s Motion, being

fully advised in the premises and having considered all of the evidence and the arguments of the

parties, orders as follows: 

I.

IT IS HEREBY ORDERED that Plaintiff Commission’s Motion is GRANTED; 

II.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Defendant Stephen

G. Donahue (“Donahue”) is liable for $4,894,108.77, representing all ill-gotten gains received by

him as a result of the conduct alleged in the Commission’s Complaint. The amounts previously

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collected by the Receiver and the Securities Investor Protection Corporation (“SIPC”) Trustee in

this matter shall fully satisfy Defendant Donahue’s disgorgement obligation; 

III.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Michael R. Barrett,

Esq., the Receiver in this matter, shall distribute the remaining Receivership assets, after

calculating his remaining fees and expenses, pro rata between the remaining unpaid investors in

this matter and SIPC;

IV.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the Commission’s

claim for civil penalties against Defendant Donahue is hereby dismissed; 

V.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the Commission’s

claims for a permanent injunction, disgorgement and civil penalties against Defendant Donahue

Securities, Inc. (“DSI”) are hereby dismissed;

VI.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the Court shall

retain jurisdiction of this matter for all purposes, including, but not limited to, the purpose of

implementing and carrying out the terms of all orders and decrees which may be entered herein,

enforcement of this Order, and to entertain any suitable application or motion for additional

relief within the jurisdiction of this Court.

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VII.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that there being no just

reason for delay, the Clerk of the Court is hereby directed to enter this Order.

IT IS SO ORDERED.

s/Sandra S. Beckwith

SANDRA S. BECKWITH, Chief Judge

UNITED STATES DISTRICT COURT

Dated: August 15, 2005

Submitted by:

s/ Anne C. McKinley

Anne C. McKinley, IL Bar No. 6270252

One of the Attorneys for Plaintiff

U.S. Securities and Exchange Commission

175 West Jackson Boulevard, Suite 900

Chicago, Illinois 60604

Telephone: (312) 353-7390

Facsimile: (312) 353-7398

mckinleya@sec.gov

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