SEC Sanctioned Over Deposition In Life Partners Fraud Suit

Law360, Houston (August 17, 2012, 7:59 PM EDT) -- A Texas federal judge on Friday ordered sanctions against the U.S. Securities and Exchange Commission in its accounting fraud suit against Life Partners Holdings Inc. for improperly issuing a subpoena to obtain testimony from a witness.

U.S. District Judge James R. Nowlin ruled that the SEC violated the Federal Rules of Civil Procedure when it took the deposition of nonparty witness Peter T. Cangany Jr., a partner with Life Partners' former auditor Ernst & Young LLP, without giving notice to Life Partners, the sanctions order said....
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