Case 1:14-cv-02468-MHC Document 54 Filed 12/09/15 Page 1 of 4

IN T H E UNITED STATES D I S T R I C T COURT

F O R T H E NORTHERN DISTRICT OF G E O R G I A
ATLANTA DIVISION

S E C U R I T I E S AND E X C H A N G E
COMMISSION,
C I V I L ACTION F I L E

Plaintiff,

NO. l:14-CV-2468-MHC

V.

THOMAS J . L A W L E R and
F R E E D O M FOUNDATION USA
L L C dba F R E E D O M C L U B USA,
Defendants,
DIVINE SPIRIT L L C , ORDER
PROCESSING L L C , PROSPERITY
SOLUTIONS L L C , and V I O L E T
BLESSINGS L L C ,
Relief Defendants.

ORDER
On July 14, 2015, Plaintiff Securities and Exchange Commission (the
"Commission") filed a "Motion for an Order to Show Cause Why Defendant
Thomas J. Lawler Should Not Be Held in Contempt For Failing to Comply With
This Court's Previous Orders." [Doc. 48.] On September 2, 2015, this Court
issued an Order directing Lawler to appear in this Court on September 21, 2015

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and show cause, i f any there be, as to why this Court should not issue an order
holding him in civil contempt for violating this Court's previous orders. [Doc. 49.'
Lawler was served not only through the Clerk's office but also through a process
server engaged by the Commission, which effectuated service on Lawler's wife.
[Doc. 50.] Lawler failed to appear at the contempt hearing. [Doc. 51.'
On September 21, 2015, the Court issued an Order finding Lawler in
contempt, and requiring that Lawler comply with various discovery requests,
repatriate overseas assets, and sit for a deposition by September 28, 2015. See
September 21, 2015, Order [Doc. 52]. I f Lawler failed to do so, he was required to
pay a fme of one thousand ($1,000) dollars per day beginning on Tuesday,
September 29, 2015, until he purged himself of his contempt. I d Then, if Lawler
had not folly complied with this Order by Monday, October 5, 2015, the daily fme
should increase to two thousand ($2,000) dollars per day. I d Finally, the Court
stated, if Lawler had not folly complied with the Court's Order by October 13,
2015, upon motion supported by sworn statement or affidavit presented by the
Commission, it intended to incarcerate Lawler until he purges himself of his
contempt and compliance is complete. I d
On November 20, 2015, the Commission filed a Motion to Compel
Defendant Lawler's Compliance through Incarceration [Doc. 53] and Declaration
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of Pat Huddleston [Doc. 53-1], stating that Lawler has failed to comply, or even to
attempt to comply, in any way with the Court's September 21, 2015, Order. [Docs.
53, 53-1.] Lawler has failed to respond to the Commission's motion.
The Court has the inherent power to enforce compliance with its lawful
orders by contempt. Young v. United States ex rel Vuitton Et Fils S.A., 481 U.S.
787, 795 (1987); see also 18 U.S.C. 401. "Civil contempt proceedings are
brought to enforce a court order that requires a party to act in some defined
manner." Chairs v. Burgess, 143 F.3d 1432, 1436 (11th Cir. 1998) (internal
citation and punctuation omitted). The Commission has the burden to show by
clear and convincing evidence that Lawler violated an earlier court order. Id.
Here, the Commission has met its burden, and the burden now shifts to Lawler to
explain why he should not be held in contempt at a show-cause hearing. FTC v.
Leshin, 618 F.3d 1221, 1232 (11th Cir. 2010). At the hearing, Lawler "is allowed
to show either that he did not violate the court order[s] or that he was excused from
complying. [He] may be excused because of an inability to comply with the terms
ofthe order" but "must offer proof beyond the mere assertion of an inability.
Instead, a contemnor demonstrates an inability to comply only by showing that he
has made in good faith all reasonable efforts to comply." Chairs, 143 F.3d at 1436
(intemal citations and punctuation omitted).
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In the interest of providing Lawler one final opportunity to demonstrate

reason, i f any, why he should not be required to comply with the Court's Orders,
the Court will hold a hearing on January 6, 2016, at 11:00 A.M. Failure to appear
at the hearing will subject Lawler to a finding that he remains in civil contempt of
the Court's Orders, and to additional sanctions, including incarceration.
IT IS H E R E B Y ORDERED that Defendant Lawler appear on January 6,
2016, at 11:00 A.M., in Room 1905 ofthe United States Courthouse, Richard B.
Russell Federal Building, 75 Ted Turner Drive, S.W., Atlanta, Georgia. I T IS
F U R T H E R ORDERED that Defendant Lawler shall be personally served with a
copy of this Order by the United States Marshals Service at 5077 Tanaga Court,
Stone Mountain, Georgia, 30087, or at any other address where he is physically
located. The Clerk is D I R E C T E D to provide a copy of this Order to the United
States Marshals Service with which to serve Defendant Lawler.
IT IS SO ORDERED this 9th day of December, 2015.

MARK H. COHEN
United States District Judge