S.E.C. v. First Choice Management Services, Inc.

On remand, Dist. Ct. did not err in imposing $600,000 sanction on third-party that originally claimed interest in certain oil leases that were eventually returned by third-party to defendant’s receiver, where third-party violated 2010 Dist. Ct. order requiring third-party to obtain agency authorization to operate oil wells on land that was subject to said leases. Record showed that Dist. Ct. granted third-party multiple extensions of time to obtain said authorization, and third-party’s delay generated over $600,000 in additional environmental compliance costs arising out of non-producing oil wells. Third-party also failed to replace $250,000 bond as it had agreed to do.