SALEM — A federal judge in Eugene denied a request from regulators to collect millions of dollars in civil penalties from Jon Harder, the former chief executive officer of Sunwest Management.
Judge Michael Hogan’s decision, made public Tuesday, came just two weeks after Harder was arraigned on criminal fraud charges.
The U.S. Securities and Exchange Commission wanted to hit Harder with at least $180 million in civil penalties.
Hogan wrote that the court does not minimize the violations that occurred, but acknowledges Harder’s “miraculous" effort to minimize investor losses.
According to the judge’s order, many investors will get back about 60 percent of the money they invested in the Salem company that — before its collapse — was known for its chain of assisted living centers.