Ex-GlobeTel Execs Say Penalties Too High For $119M Fraud

Law360, Miami (December 13, 2013, 5:56 PM EST) -- Three former GlobeTel Communications Corp. employees accused by the U.S. Securities and Exchange Commission of aiding a scheme to report $119 million in inflated company revenue appealed rulings against them, telling an Eleventh Circuit panel Friday that the penalties were too large.

Former GlobeTel Chief Operating Officer Lawrence Lynch, who settled with the SEC on liability claims, says the district court abused its discretion in imposing a disproportionate and inequitable penalty of $780,000 in connection with the fraud. Meanwhile, former GlobeTel Chief Operating Officer Joseph Monterosso...
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