SEC v. Radcliffe, Civil Action No. 1:11-cv-00091 (D.D.C. Filed Jan 14, 2011) is an action against Joseph Racliffe and his son Michael who operated a sports memorabilia company called Image Innovations Holdings, Inc. Michael was a director of the company and the COO of its operating subsidiary. His father was a consultant although the SEC claims he actually controlled the company. According to the papers the defendants falsified the revenue of the company in 2004 and 2005 by fabricating substantial portions of its income. During that period Joseph sold shares of the company at inflated prices while in possession of material non-public information. Both defendants settled with the Commission, consenting to the entry of permanent injunctions prohibiting future violations of Exchange Act Section 10(b) and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B). The injunction as to Joseph Racliffe is also based on Securities Act Section 5 and Exchange Act Section 20(a). In addition, Joseph agreed to pay disgorgement of $955,000, prejudgment interest and a penalty of $175,000. The son agreed to disgorge $10,000 along with prejudgment interest and a civil penalty of $75,000. The total amount of disgorgement in the settlements equals the trading profits