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February 14, 2018
Brattle's Client Wins $14.7M in Judgments in Wireless Spectrum Investment Fraud Matter

Brattle’s client, the Securities and Exchange Commission (SEC), won a judgment of more than $14 million against defendants in disgorgements and civil penalties, as ordered by a U.S. District Judge in the matter Securities and Exchange Commission v. Janus Spectrum LLC et al.

The case involved a securities fraud offering orchestrated by the founders of Janus Spectrum LLC, who misled investors by claiming to prepare applications for Federal Communications Commission (FCC) cellular spectrum licenses on behalf of third party fundraising entities, promising that their investments would yield substantial returns through the sale or lease of the FCC licenses to major wireless carriers.

Principal Coleman Bazelon was retained as an industry expert for the SEC to support their claims seeking disgorgement of allegedly ill-gotten gains and penalties. Specifically, Dr. Bazelon provided an explanation of spectrum and wireless communication, including its value, the history of FCC licensing, and a description of the licenses at issue in this case (“Expansion and Guard Bands”). Furthermore, Dr. Bazelon explained his findings that the defendants misrepresented many aspects of their offerings to their investors, including both the value and purpose of Expansion and Guard Bands.

The judge agreed with Brattle’s client, finding the defendants liable on multiple counts of misleading investors through the Fundraising Entities’ offerings and sales of securities, granting final judgment on all claims as well as ordering permanent injunction against the defendants.

Dr. Bazelon’s full testimony can be downloaded using the link below.