P R E S S R E L E A S E
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CHICAGO, IL - On Thursday, September 30, 2010, the Securities and Exchange Commission filed a civil action against our clients Rex R. Steffes, Rex C. Steffes, Cliff M. Steffes, and Bret W. Steffes. At the same time, the lawyers from the SEC’s Chicago Office issued a press release which inappropriately exaggerated the charges and mischaracterized the underlying facts.
Unlike the SEC, our usual practice is to litigate cases in the courts, not the press. But because the SEC’s press release was so objectionable, we respond briefly as follows:
Rex Steffes and his family categorically denies these charges. There is nothing illegal about trading securities of a company where relatives work. They did not receive any inside information of any kind and committed no other misconduct. The SEC’s investigation was materially incomplete and has resulted in these unjust charges.
This is not the first court case involving the Steffes family and the SEC. On February 8, 2010, Rex. C. Steffes was forced to file a Rule 27 Petition to Preserve the Testimony of his elderly and seriously ill father-in-law, whom the SEC had threatened with prosecution. A copy of that Petition is attached and provides additional details about the Steffes family’s view of these baseless charges.
An open mind should be kept about these charges until the conclusion of this matter. Cases should not be tried in the press, but only in the Courts under the applicable principles of law and the rules of evidence. Unfortunately, the SEC does not respect that important principle.