A federal district judge in Miami has fined a Florida man and his company $400,000 for making “numerous false and misleading statements and omissions” in his offers to buy AMR Corp. and Eastman Kodak Co. in March 2011.

In an order handed down Monday, U.S. District Judge Paul C. Huck gave two $100,000 civil penalties to Allen E. Weintraub and two $100,000 civil penalties to his company, AWMS Acquisition Inc., also known as Sterling Global Holdings.

Weintraub sent letters to both companies offering to buy their stock, and sent copies of the letter to the news media.

The court found that he and AWMS made the offers “despite either defendant having no significant assets, no funds on hand, no other financing, and no professional services engaged to complete the purported offers.”

The actions “involved fraudulent offers for two different companies and repeated misrepresentations made over a period of months. Weintraub is a repeat offender who was on probation and subject to a securities fraud injunction while he engaged in the fraudulent conduct,” the judge said in its decision.

“Moreover, by sending the false tender offer letters to shareholders of Kodak and AMR, and publicizing the false offers through the media, Weintraub created a significant risk of substantial losses to other persons, particularly any investors who bought shares of Kodak or AMR believing that there were legitimate offers to purchase the shares of these companies at a premium price,” the judge wrote in his findings of fact and conclusions of law.

Even though the judge handed down the penalties, he noted that that the Securities and Exchange Commission has said that Weintraub still hasn’t paid a previous fine of $1.05 million from previous violations.

The order included a permanent injunction against Weintraub and his company from future violations of federal securities law.

The order setting down the penalties follows a Dec. 30 summary judgment against Weintraub and AWMS.

In AMR’s case, Weintraub alleged that he would pay $9.45 a share, or $3.25 billion for all the company’s stock. The day before the March 29 offer, AMR shares closed at $6.58.

On Nov. 29, AMR filed bankruptcy papers in a New York federal bankruptcy court. In late December, the New York Stock Exchange delisted AMR shares. AMR shares were trading Thursday in the range of 35 to 36 cents in the OTC market.

Click here for some previous Airline Biz items about the Weintraub matter.

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