MIAMI (CN) - A federal judge found Jamie Solow in contempt for refusing to disgorge more than $3.4 million in a securities fraud judgment after soaking elderly investors. The judge said Solow transferred millions of dollars in assets to his wife; he ordered his arrest if Solow does not cough up the money by Monday.
The SEC sued Solow and his wife, Gina, in November 2009, and also sued JSolow Condo One, Virtualbank FSB nka Lydian Private Bank, Federation Advances Corp. and Washington Mutual nka JP Morgan Chase Bank.
Rather than pay the $3.4 million judgment, prosecutors say, Solow and his wife liquidated $1.5 million in securities; Mrs. Solow hired "asset protection attorneys" to strip her husband of assets; and Solow now claims to be a "'ward of his wife,' even though the Solows' accumulated wealth has been derived exclusively from income earned by Mr. Solow alone."
"Solow still lives a luxurious lifestyle, enjoying the benefits of the money he has made over the years, yet he refuses to repay the victims of his fraud," U.S. District Judge Donald Middlebrooks wrote in the contempt citation. "Such a situation cannot stand."
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.