Notice of Proposed Distribution Plan in SEC v. Tecumseh Holdings Corporation, et al., 03 Civ. 5490 (SAS) (S.D.N.Y.)
On April 29, 2011, the SEC submitted a proposed distribution plan to the United States District Court for the Southern District of New York to equitably distribute recovered funds to investors who purchased securities in the offerings made by Tecumseh Holdings Corporation (“Tecumseh”) and its subsidiary Tecumseh Tradevest LLC (“Tradevest”) from June 2000 to July 2003.
On July 24, 2003, the SEC filed a civil injunctive action against Tecumseh, Tradevest, S.B. Cantor & Co., Inc., John L. Milling, Gerard A. McCallion, Anthony M. Palovchik and Dale Carone (collectively “Defendants”). The SEC also named Tecumseh Alpha Fund LP, Tecumseh Alpha LLC and Stracq, Inc. as relief defendants. The SEC’s complaint alleged that Defendants engaged in unlawful unregistered securities offerings of Tecumseh and Tradevest securities, and that certain Defendants also made material misrepresentations and omissions in the offering documents that were supplied to investors and potential investors in connection with the offerings.
On April 11, 2005, the Court entered a Final Judgment on consent against relief defendant Stracq in which it agreed to disgorge $660,000. On March 9, 2009, the Court entered a Final Judgment on consent against McCallion in which he was ordered to pay $1 in disgorgement and $40,000 in civil penalty. Stracq and McCallion have satisfied their obligations under the judgments entered against them. Thereafter, the Court ordered the remaining Defendants, Tecumseh, S.B. Cantor & Co., Inc., Milling, Palovchik and Carone, to pay disgorgement, prejudgment interest and/or civil penalties. None of these defendants has made any payments to date.
For further information about the SEC’s action, please read the Litigation Release No. 18251 (July 25, 2003).
All payments made to date have been deposited in an interest-bearing account with the Court. If the Court approves the SEC’s proposed plan, after payment of any tax liabilities and other fees and expenses, the funds will be distributed on a pro rata basis to investors, in the manner described in the proposed plan.
A.B. Data, Ltd., the SEC’s Fund Administrator, has sent a copy of the plan to those investors referenced in the proposed plan. You may contact the Fund Administrator directly by visiting the website set up for Tecumseh investors at www.tecumsehfairfund.com, or by email at info@TecumsehFairFund.com, or by calling (866) 828-2487.
Any investor who wishes to comment on or object to the proposed plan must do so by sending a letter to the SEC by August 8, 2011, addressed to:
Nancy A. Brown, Esq.
To see papers related to the proposed distribution plan, including the plan itself, please click on the following links.