Without admitting to or denying the findings, CCA and Szilagyi agreed to be censured, to cease and desist from future violations and to certain undertakings as described in the order. CCA agreed to pay disgorgement of $8,176,722 plus prejudgment interest of $731,759, and a civil penalty of $1.3 million. Szilagyi agreed to pay a civil penalty of $300,000. The payments will be placed in a fair fund for distribution to affected investors, the SEC said.
The SEC's complaint against Walczak alleges that he violated the antifraud provisions of the federal securities laws and seeks a permanent injunction, disgorgement of ill-gotten gains, and a civil penalty.
Additionally, in parallel action, the Commodity Futures Trading Commission also said it settled charges against CCA and Szilagyi, and a district court action against Walczak.