Shawn Hackman – $1 Million Fine For Disgorgement & More

On April 29, 2022, the Securities and Exchange Commission obtained a judgment against Shawn Hackman, who was previously disbarred by the State of Nevada and suspended by the SEC, ordering him to comply with the SEC’s suspension order and to pay nearly $1 million in disgorgement and prejudgment interest for money he earned in violation of the suspension order.

Shawn Hackman is to pay ~$1 million in disgorgement and prejudgement interest for money he earned while suspended.

In 2002, the Commission barred Hackman from appearing or practicing before the Commission as an attorney. On June 30, 2021, the SEC filed an application, pursuant to Section 21(e)(1) of the Securities Exchange Act of 1934, alleging that Hackman violated the suspension by (1) drafting and providing legal advice on SEC filings made by scores of companies, and (2) directly communicating with SEC staff on substantive legal issues concerning SEC filings. The application sought an order requiring Hackman to comply with his suspension and disgorgement of money earned in violation of the suspension.

The Court’s April 29 judgment found that Hackman violated his SEC suspension by practicing as an attorney before the Commission while employed as a purported paralegal by Nevada attorneys Elaine A. Dowling, Esq. and Harold P. Gewerter, Esq. It also ordered Hackman to comply with the SEC suspension order and to make the nearly $1 million payment noted above.

In 2021, the Commission issued orders denying Dowling and Gewerter the privilege of appearing or practicing as attorneys before the Commission, finding that they engaged in improper professional conduct by allowing and enabling Hackman to appear and practice before the SEC in violation of his suspension (and his Nevada disbarment) while they employed him as a purported paralegal.

The SEC’s investigation and litigation were conducted by Eric Reicher and Karen J. Shimp and supervised by Thomas Karr, all in the SEC’s Office of the General Counsel

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Provided by SEC.gov

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