Cavanagh et al.
In 1998, the SEC filed a civil action and amended complaint against numerous defendants alleging they manipulated the market price in the securities of Electro-Optical Systems Corp. (EOSC), fraudulently touted the stock and retailed substantial amounts of unregistered EOSC stock at very inflated prices. †The Court ordered injunctive relief and the payment of civil penalties against the defendants and the disgorgement of ill-gotten gains from defendants and relief defendants.† Many of the defendants and various relief defendants settled with the SEC and deposited funds and securities into the registry of the Court.
For more information about the SECís action, you can read Litigation Release No. 18864 (Sept. 1, 2004).†
On July 1, 2010, the Court appointed Robert G. Heim, Esq. as Distribution Plan Administrator to prepare, in consultation with the staff of the SEC, a plan of distribution for investors who incurred losses in EOSC between December 19, 1997 and March 13, 1998. The Court approved the plan.†As of August 4, 2010, the accounts established by the Clerk of the Court had a balance of $9,504,088.60.
For the latest information about the distribution plan and the claims process, please visit the Distribution Plan Administratorís website.