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SEC: Man Avoiding Paying $6M Fine in 2010 Settlement

The SEC alleged Liberty improperly diverted more than $9 million of a $100 million venture capital fund to himself or associates

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Federal securities officials want a former Portland, Maine, developer man to pay a nearly $6 million fine he accepted in a 2010 settlement. 

The Portland Press Herald reports the Securities and Exchange Commission filed a motion in September in Philadelphia saying Michael Liberty, of Windermere, Florida, hid money and lied about being unable to pay the remaining $5.4 million. 

The SEC alleged Liberty improperly diverted more than $9 million of a $100 million venture capital fund to himself or associates. 

Liberty agreed to settle the allegations. A judge cut the fine to $600,000 after Liberty told the SEC his net worth was negative $29 million. 

His lawyer counter-filed and says Liberty was telling the truth about his financial condition. 

Liberty pleaded guilty Monday in Maine in an illegal campaign contributions case.

Copyright AP - Associated Press
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