In January of 2004, the SEC notified Jamie Solow that they were conducting an inquiry into the sale of certain investments that he had made to his clients. Shortly thereafter, he transferred his 100% ownership interest in a corporation which owned his condominium residence to his wife. The SEC issued its notice of intent to sue him in August of 2005 and in July of 2006 he transferred real estate worth $2,000,000 to his wife. During 2006, more than 40 of Mr. Solow’s clients filed arbitration claims seeking damages in excess of $15,000,000. Early in 2008, in the months between the verdict against him and the entry of judgment, Mr. Solow liquidated securities in excess of $1,500,000 and transferred them to his wife. In February of 2008, Mr. Solow’s wife retained the law firm of Donlevy-Rosen & Rosen, P.A. to establish an offshore trust in the Cook Islands. The Solows then entered into a series of transactions whereby an offshore lender placed liens on their properties and placed the proceeds in the Cook Islands Trust.
The Florida district court issued its final judgment on May 14, 2008, finding that Mr. Solow was liable for $2,646,485.99 plus prejudgment interest of $778,302.91 (for a total of $3,424,788.90), and a civil penalty of $2,646,485.99.
On January 15, 2010, the court found Jamie Solow in contempt of the Court's final judgment for failing to pay the sums owed. In coming to this decision, the Court held that Mr. Solow did not establish that he made, in good faith, all reasonable efforts to meet the terms of the final judgment. In addition, the Court found that Mr. Solow created the legal impossibility that made it impossible to comply with the final judgment.
This case is the fourth in a recent series of cases where a debtor has been sent to jail for contempt of court for refusing to comply with a court order to repatriate or liquidate funds for the benefit of a creditor. (Also see Federal Trade Commission v. Affordable Media, CV-S-98-669-LDG (RLH) (D. Nev. 1998); In re Lawrence, 279 F. 3d 1294 (11th Cir. 2002); SEC vs. Bilzerian, 112 F. Supp 2 12 (D.D.C. 2000)).