In a significant development, a United States district court has levied sanctions against the Securities and Exchange Commission (SEC) for engaging in “bad faith” conduct during a lawsuit against Debt Box.

Judge Robert J. Shelby rejected the SEC’s motion to dismiss the case without prejudice, citing deliberate deception by the regulator regarding evidence used to secure a Temporary Restraining Order (TRO).

In the filing dated the 18th of March, Shelby stated,

“The “critical evidence” the SEC offered to have obtained ‘lacked any basis,’ which was nonetheless advanced in “deliberately false and misleading ways.”

He further added,

“The bad faith in inextricable from the abusive conduct and a sanction of attorneys’ fees and costs for all expenses resulting from that conduct is appropriate.”   Original Artitcle