Opinion
12-CV-06421 (KMK)
01-18-2024
SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. EDWARD BRONSON, E-LIONHEART ASSOCIATES, LLC, d/b/a FAIRHILLS CAPITAL Defendants and FAIRHILLS CAPITAL, INC. Relief Defendant.
ORDER MODIFYING ASSET FREEZE AND ORDERS REGARDING DEFENDANT EDWARD BRONSON'S NOTIFICATION REQUIREMENTS FOR CERTAIN CASH RECEIPTS AND DISBURSEMENTS
WHEREAS the Court entered an asset freeze over Defendant Edward Bronson's (“Bronson”) assets and income and continued the freeze in effect until the parties resolve turnover issues;
WHEREAS the Court ordered Edward and Dawn Bronson (the “Bronsons”) to provide “prompt notice of any funds received from any source in an amount of $1,000 or more (whether received in one lump sum or in any series of payments)”;
WHEREAS the Court ordered the Bronsons not to “make any transfer over $1,000, directly or indirectly, through any other individual or entity including but not limited to the Bronson Entities, without approval from the SEC....”;
WHEREAS the Court ordered the Bronsons to provide monthly statements including mortgage statements along with the source of funds used to make any mortgage payment; ConEd bills along with the source of funds used to make any payment thereon; property tax bills along with the source of funds used to make any payment thereon; health insurance bills along with the source of funds used to make any payment thereon; and legal bills along with the source of funds used to make any payment for representation;
WHEREAS Bronson has commenced earning a set salary (“Salary”) of $2,000 per week and commissions;
WHEREAS Bronson has identified particular recurring expenses set forth in the attached table (“Recurring Expenses”), which the Bronsons pay monthly;
WHEREAS the parties seek to reduce the Bronsons' administrative burden of reporting Recurring Expenses;
WHEREAS Bronson seeks clarity on whether and what expenses he can pay without violating the asset freeze; and
WHEREAS the parties have jointly submitted the proposed order for the Court's consideration. Therefore, IT IS HEREBY ORDERED that Bronson may pay the expenses listed in Table A, up to 110% of the amounts set forth in Table A, without being deemed to have violated the asset freeze and without prior notice to the SEC; and
IT IS FURTHER ORDERED that the Bronsons are not required to promptly notify the SEC of receipt of Bronson's Salary of $2,000 per week. However, any commission or other income of $1,000 or more may be deposited into the Bronsons' bank account without prior approval of the SEC, but, whether received in one lump sum or in any series of payments, continues to require prompt notification to the SEC. However, such funds shall not be disbursed without prior approval from the SEC.
Table A
Expense
Expense Cap per month
Health Insurance
$4,800
Cell Phones
$650
Oil
$1,200
Food
$2,000
Internet
$323
Cable/Phone
$410
Car Insurance
$840
Car Payment
$820
Gasoline
$250
Miscellaneous
$1,400