Case Law
SEC v. Bilzerian, 112 F. Supp. 2d 12 (D.D.C. 2000)
The trust was revocable and he would not produce the deed. That, not the offshore structure, decided the case.
Short answer: Bilzerian was held in civil contempt for failing to satisfy a roughly $62 million disgorgement judgment. The decisive facts were evidentiary: the trust was revocable, he did not produce the trust instrument, and his supporting declarations were phrased only in the present tense.
The citation
- Case: Securities & Exchange Commission v. Bilzerian
- Citation: 112 F. Supp. 2d 12 (D.D.C. 2000)
- Decided: August 21, 2000
What the court actually held
- Burden: the alleged contemnor must establish inability to comply “clearly, plainly, and unmistakably,” and must show he made “in good faith all reasonable efforts to comply.”
- Self-induced inability is no defense, consistent with Lawrence.
- Partial inability is no defense: “Bilzerian cannot avoid a finding of contempt merely by showing that he is unable to pay the entire $62 million judgment at this time.”
- On the trust: the supporting declarations were “phrased only in the present tense and do not address whether Bilzerian could be reinstated as a beneficiary or trustee at a later date. In addition, the Trust is revocable and Bilzerian has not informed the Court under what circumstances the Trust may be revoked.” Applying Affordable Media: “By providing only incomplete disclosure concerning the Trust and refusing to provide the Trust instrument, Bilzerian clearly has not met this high burden. Moreover, his failure to provide the Trust instrument leads the Court to doubt the veracity of his claim to have no interest in or control over it.”
The planning lesson
The court never reached whether the structure was substantively sound, because it did not have to. Two avoidable errors decided it: the trust was revocable, which is fatal to any protective claim, and the deed was withheld, which converted a burden he might have carried into one he could not. A properly built structure is one you can hand to a judge.
Why this matters for your plan
Reading the cases is not an academic exercise. Every one of these decisions turned on something a planner controls: when the structure was created, how much control the settlor kept, whether the governing-law choice was backed by real contacts, and whether the client told the truth on the record. We build to the way these disputes are actually litigated, because Elizabeth litigates them. To discuss how your situation maps onto this body of law, call (858) 755-6672.
A necessary caveat
These summaries describe published decisions. They are informational only, are not legal advice, and do not predict any outcome. Case law changes, and the result in any dispute depends entirely on its own facts and procedural posture. Consult a qualified attorney about your circumstances.
Citation status
KeyCite as of August 8, 2026: Yellow. No negative direct history. Two negative citing references. The docket carries a long same-litigation history that has not been traced here.
Treatment signals change. Verify current status before relying on any decision.
Common questions
Frequently asked
Is it a defense to contempt that you cannot pay the full judgment?
No. In SEC v. Bilzerian the court held partial inability is not a defense, a contemnor cannot avoid contempt merely by showing he cannot pay the entire amount at that time.
What happens if you refuse to produce the trust instrument?
In Bilzerian, refusing to produce the trust deed meant the debtor could not carry the especially high burden of proving impossibility, and led the court to doubt the veracity of his claim to have no interest in or control over the trust.
This website is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Every situation is different; please consult a qualified attorney about your specific circumstances.
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