NVID International, Inc.
On April 7, 1997, the SEC obtained temporary restraining orders and asset freezes against NVID International, Inc., Robert Bunte, and Matthew Klenovic, and obtained asset freezes against two related parties. The SEC alleged that the defendants fraudulently raised millions of dollars from investors purportedly for business purposes, but actually used a substantial portion of the funds for personal purposes, including purchases of three homes. The SEC subsequently obtained Final Judgments and Disgorgement Orders against the NVID defendants. For more information about the SEC's action, you can read Litigation Release Nos. 15317 (Apr. 7, 1997) and 15330 (Apr. 15, 1997).
At the SEC's request, the Court appointed Charles Stutts to liquidate and hold the proceeds of the assets subject to disgorgement. He has recovered these assets and has liquidated them, except for some shares of common stock in a public company. The amount of funds currently in the Receiver's possession is about $300,000. These funds, along with the proceeds from the sale of the common stock, will be distributed to investors (less administrative expenses) under a Plan of Distribution prepared by the SEC and filed with the Court. As set forth in the Plan, the distributed funds will be substantially less than the amount of funds that were invested with NVID by investors.
The Receiver filed a Final Report in February 2002, and a hearing has been scheduled on the Final Plan of Distribution on June 24, 2002, at 3:00 p.m. before:
Honorable James D. Whittemore