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Case 1:14-cv-02468-MHC Document 69-1 Filed 04/28/17 Page 1 of 6

Case 1:14-cv-02468-MHC Document 69-1 Filed 04/28/17 Page 2 of 6

IN THE UNITED STATES DISTRICT COURT


FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

SECURITIES AND EXCHANGE


COMMISSION,

Plaintiff

vs.
Civil Action No.
THOMAS J. LAWLER and 1:14-cv-02468-MHC
FREEDOM FOUNDATION USA LLC
dba FREEDOM CLUB USA,

Defendants,

DIVINE SPIRIT LLC,


ORDER PROCESSING LLC,
PROSPERITY SOLUTIONS LLC,and
VIOLET BLESSINGS LLC,

Relief Defendants.

DECLARATION OF PAT HUDDLESTON II


REGARDING PREJUDGMENT INTEREST

I, Pat Huddleston II, declare pursuant to the provisions of28 U.S.C. ~ 1746:

1. I am employed by the Atlanta Regional Office of the Securities and

Exchange Commission ("Commission" or "SEC")as Senior Trial Counsel.


Case 1:14-cv-02468-MHC Document 69-1 Filed 04/28/17 Page 3 of 6

2. My work address is 950 East Paces Ferry Road, N.E., Suite 900,

Atlanta, Georgia 30326. The telephone number for my office is 404-842-7616.

3. In conjunction with the preparation ofthis declaration, I have caused

the prejudgment interest to be calculated on the amounts of disgorgement pled for.

To obtain the calculations, I have used a prejudgment interest calculator program.

This software calculator is available to all employees of the SEC's Division of

Enforcement.

4. In conjunction with the preparatiion of this declaration, I have caused

the prejudgment interest against Defendants Lawler and Freedom Foundation to be

calculated on two disgorgement amounts: $3.5 million and $13,999,924. Those

prejudgment interest calculations are attached hereto as Exhibits A and B,

respectively. The calculations begin on the last possible date of violations of July

31, 2014 and end on the last day of the month in which this motion was filed. The

prejudgment interest calculation uses the interest rate used by the Internal Revenue

Service for unpaid balances(which changes quarterly). On a disgorgement amount

of $3.5 million, prejudgment interest for that period is $327,977. On a

disgorgement amount of$13,999,924, prejudgment interest is $1,311,901.

2
Case 1:14-cv-02468-MHC Document 69-1 Filed 04/28/17 Page 4 of 6

I declare under penalty of perjury that the foregoing is true and correct.

Executed this 28th day of April, 2017.


Case 1:14-cv-02468-MHC Document 69-1 Filed 04/28/17 Page 5 of 6

U.S. Securities and Exchange Commission

Division of Enforcement

Prejudgment Interest Report

PJI on $3.5 Million


Annual Period Principal+Interest
Quarter Range Quarter Interest
Rate Rate

Violation Amount $3,500,000.00


08/01/2014-09/30/2014 3% 0.5% $17,54795 $3,517,547.95
0/O 1 /2014-12/31/20 l4 3% 0.76% $26,598.44 $3,544,146.39
01/01/2015-03/31/2015 3% 0.74% $26,216.97 $3,570,363.36
04/01/2015-06/30/2015 3% 0.75% $26,704.36 $3,597,067.72
07/01/2015-09/30/2015 3% 0.76% $27,199.74 $3,624,267.46
10/01/2015-12/31/2015 3% 0.76% $27,405.42 $3,651,672.88
01/01/2016-03/31/2016 3% 0.75% $27,237.89 $3,678,910.77
04/01 /2016-06/30/2016 4% 0.99% $36,588.07 $3,715,498.84
07/01 /2016-09/30/2016 4% 1.O 1% $37,358.02 $3,752,856.86
10/0V20I6-12/31/2016 4% 1.01% $37,733.64 $3,790,590.50
01/01/2017-03/31/2017 4% 0.99% $37,386.65 $3,827,977.15

Prejudgment Violation Quarter Interest Prejudgment


Range Total Total
08/01/2014-03/31/2017 $327,977.15 $3,827,977.15
Case 1:14-cv-02468-MHC Document 69-1 Filed 04/28/17 Page 6 of 6

U.S. Securities and Exchange Commission

Division of Enforcement

Prejudgment Interest Report


PJI at $13.9
Annual Period
Quarter Range Quarter Interest Principal+Interest
Rate Rate

Violation Amount $13,999,924.00


08/01/2014-09/30/2014 3% 0.5% $70,191.40 $14,070,1 15.40
10/O 1 /2014-12/31/2014 3% 0.76% $106,393.20 $14,176,508.60
01/01/2015-03/31/2015 3% 0.74% $104,867.32 $14,281,375.92
04/01/2015-06/30/2015 3% 0.75% $106,816.87 $14,388,192.79
07/01/2015-09/30/2015 3% 0.76% $108,798.39 $14,496,991.18
10/01/20 15-12/31/2015 3% 0.76% $109,62 I.08 $14,606,6 12.26
01/01/2016-03/31/2016 3% 0.75% $108,950.96 $14,715,563.22
04/01/2016-06/30/2016 4% 0.99% $146,351.50 $14,861,914.72
07/01/2016-09/30/2016 4% 1.01% $149,431.27 $15,011,345.99
10/O 1 /2016-12/31/2016 4% 1.O 1% $150,933.75 $15,162,279.74
O l /0 I /2017-03/3 I /2017 4% 0.99% $149,545.77 $ 15,31 I ,825.51

Prejudgment Violation Quarter Interest Prejudgment


Range Total Total
08/01/2014-03/31/2017 $1,311,901.51 $15,311,825.51