U.S. District Judge James Nowlin of the Western District of Texas has sanctioned the Securities and Exchange Commission for deposing a witness in a securities suit in January without giving prior notice to the defendants. But the SEC wants the judge to reconsider and argues that his order sets out a new rule of law.
In an Aug. 17 order, Nowlin found the SEC violated the Federal Rules of Civil Procedure (FRCP) by taking the deposition of a nonparty witness in Securities and Exchange Commission v. Life Partners Holdings Inc., et al., and that “sanctions are an appropriate remedy.”
