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SEC Won’t Be Paying for Executives’ ‘Bacchanalian Adventure’

  • Judge rips two Verdmont principals for ‘exquisite’ expenses
  • Lawyer says SEC in contempt by failing to reimburse travel
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The U.S. Securities and Exchange Commission doesn’t have to pay for what a judge called the "bacchanalian adventure" of two executives after agreeing to cover their travel costs to be questioned in a lawsuit. 

The regulator’s obligation to pick up the tab for taking depositions of the two men, principals of a defunct Panamanian broker-dealer firm, Verdmont Capital SA, doesn’t extend to “exquisite" expenses like first-class flights from Panama City to London, a five-star hotel, a $1,000 bar tab and a two-day side trip to Madrid, U.S. District Judge William Pauley in Manhattan said in a ruling Thursday.