U.S. District Judge Denise Cote of the SDNY has granted a default judgment in favor of the SEC against two Dutch nationals whose only response to the SEC’s insider trading claims was to refuse U.S. jurisdiction. Courthouse News reports that the two Amsterdam residents have repeatedly refused to participate in the litigation.
The SEC alleges that Euro Security Fund illegally purchased stock in Elsag Bailey Process Automation N.V. through a Swiss brokerage, based on inside information. The defendants advised the court that they “do not recognize the judgment in a case against defendants of a foreign nation,” and have failed to appear for conferences, provide disclosures, or participate in discovery.
In granting the default judgment, Judge Cote ruled that defendants had defied several court orders, and that the order was necessary “to deter those who might be tempted to such conduct.”
