Case: 10-1186 Document: 1299762 Filed: 03/24/2011 Page: 1

No. 10-1186 Oral Argument Not Scheduled

___________________________________________________

UNITED STATES COURT OF APPEALS

FOR THE DISTRICT OF COLUMBIA CIRCUIT
___________________________________________________

JOHN GARDNER BLACK,

Petitioner,

v.

SECURITIES AND EXCHANGE COMMISSION,

Respondent.
____________________________________________________

On Petition for Review of an Order of the Securities and Exchange Commission

____________________________________________________

OPPOSITION OF THE SECURITIES AND EXCHANGE

COMMISSION, RESPONDENT, TO PETITIONER’S MOTION TO FILE A
SUPPLEMENT TO HIS REPLY BRIEF
____________________________________________________

Briefing is complete in this case. Petitioner John Gardner Black now, on

March 17, 2011, seeks leave to file a supplement to his reply brief. Black’s stated

reason for filing a supplement is a recent article in the Wall Street Journal about

Lehman Brothers quoting unnamed sources to the effect that “SEC officials” may

believe that the Commission will have difficulty proving that accounting practices

engaged in by Lehman Brothers before its collapse violated United States law.

The Commission opposes his motion.

The Wall Street Journal article is irrelevant to Black’s petition. He does not
 Case: 10-1186 Document: 1299762 Filed: 03/24/2011 Page: 2

even claim, much less show, that the accounting rules in question in his case are

the same rules in question in the Lehman Brothers case. Nor does he claim or

show that the practices maneuvers engaged in by Lehman Brothers are the same or

similar to his accounting practices.

In his proposed supplement, Black makes two statements that the

Commission wishes to correct. First, contrary to Black’s contentions at pp.3- 4 &

n. 1, and p. 5, the Commission has claimed that Black made misrepresentations to

investors. It alleged that Black represented to the school districts who were his

clients that his investment products were fully protected or collateralized by a pool

of securities equaling the amount of the districts’ principal investments, when in

fact Black’s pool of securities was worth $71 million less than the districts’

principal investments. The Commission also alleged that Black misappropriated

approximately $2 million in client funds to pay personal and business expenses, an

allegation that Black has not addressed in any of his filings in this Court. See

Commission Br., p. 4.

Second, Black claims that the Commission “never took [him] to trial.” P. 6.

That is because, (a) in the civil enforcement action brought by the Commission,

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 Case: 10-1186 Document: 1299762 Filed: 03/24/2011 Page: 3

Black agreed to a permanent injunction and disgorgement, and, (b) in the criminal

action, Black pled guilty. Commission Br., pp. 4-5.

Respectfully submitted,

RANDALL W. QUINN
Assistant General Counsel

s/Christopher Paik
CHRISTOPHER PAIK
Special Counsel

Securities and Exchange Commission

100 F. Street, N.E.
Washington, D.C. 20549
(202) 551-5187 (Paik)

March 24, 2011

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 Case: 10-1186 Document: 1299762 Filed: 03/24/2011 Page: 4

CERTIFICATE OF SERVICE

I, Christopher Paik, hereby declare that on March 24, 2011, I caused to be

served by UPS copies of the OPPOSITION OF THE SECURITIES AND

EXCHANGE COMMISSION, RESPONDENT, TO PETITIONER’S MOTION

TO FILE A SUPPLEMENT TO HIS REPLY BRIEF in Black v. SEC, No. 10-

1186, on John Gardner Black, 1446 Centre Line Road, Warriors Mark, PA 16877,

pro se.

s/Christopher Paik

Christopher Paik