Clock Runs Out For Brookstreet CEO In SEC Fraud Suit

Law360, New York (February 23, 2012, 12:11 PM EST) -- Citing a "pattern of delay" by Brookstreet Securities Corp. and CEO Stanley C. Brooks, a California federal judge granted summary judgment to securities regulators Wednesday, telling them to tee up maximum penalties against the defendants for selling $300 million in toxic collateralized mortgage obligations.

U.S. District Judge David O. Carter directed the U.S. Securities and Exchange Commission to file a proposed final judgment by Feb. 27 against Brooks, who asked five times to extend the proceedings over the life of the complaint.

"Defendants have repeatedly sought to...
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