SEC v. Benger, et al.
Case No. 09-cv-00676 (N.D. Ill.)
On February 3, 2009, the SEC filed a complaint, which was amended on April 1, 2010, December 20, 2011, and January 29, 2014, against Stefan H. Benger (“Benger”), SHB Capital, Inc. (“SHB”), Jason B. Meyers (“Meyers”), International Capital Financial Resources, LLC (“International Capital”), Philip T. Powers (“Powers”), Handler, Thayer & Duggan, LLC (“Handler Thayer”), Frank I. Reinschreiber (“Reinschreiber”), Global Financial Management, LLC (“Global”), CTA Worldwide Services, SA (“CTA”) and Stephan Von Hase (“Von Hase”) (collectively, the “Defendants”). The complaint alleged that, from March 2007 through the filing of the complaint, the Defendants violated federal securities laws by running a massive international boiler room scheme that raised at least $44.2 million from 1,400 investors by inducing foreign investors to purchase Regulation S and “pre-IPO” shares of highly speculative microcap companies. See Complaint, Amended Complaint, Second Amended Complaint, and Third Amended Complaint.
Benger, SHB, International Capital, Powers, Handler Thayer, Reinschreiber, and Global (collectively, the “Settled Defendants”) were ordered and have paid as ordered, a total of $1,223,530.74 in disgorgement, prejudgment interest, and penalties. Meyers was dismissed. The Settled Defendants final judgments ordered for the monies paid to be held in an interest bearing account (collectively, the “Fund”) with the Commission/Court, pending further order of the Court. See Handler Thayer’s Final Judgment, Benger and SHB’s Corrected Final Judgment, International Capital’s Final Judgment, Power’s Amended Final Judgment, and Reinschreiber’s Amended Final Judgment.
On April 27, 2010, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Fund.
On September 3, 2015, the Court created a Fair Fund for the disgorgement, prejudgment interest, and penalties paid by and to be paid by the Defendants and appointed Kurtzman Carson Consultants as the Distribution Agent to oversee the administration and distribution of the Fair Fund to injured investors. See Order to Establish Fair Fund and Appoint a Distribution Agent.
On February 22, 2016, the Court entered a final judgment as to Von Hase and CTA. The final judgment found that Von Hase and CTA were jointly and severally liable to pay $4,191,150.91 in disgorgement, prejudgment interest, and penalties. On April 21, 2016, Von Hase and CTA filed an appeal to the United States Court of Appeals for the Seventh Circuit, which was dismissed on January 10, 2017. See Von Hase and CTA Final Judgment.
On December 1, 2017, the Commission filed a motion to approve a distribution plan (“Plan”), together with the Plan. See the Commission’s Motion and the Plan. On December 14, 2017, the Court granted the Commission’s motion and approved the Plan.
The Plan provides that the distribution of the Fair Fund shall be made to those claimants who purchased or acquired Eligible Securities on or between March 1, 2007 and February 28, 2009, inclusive, and suffered an Eligible Loss Amount as calculated in accordance with the methodology detailed in the Plan of Allocation, attached as Appendix I. A Proof of Claim Form must be postmarked or submitted electronically by the Filing Deadline, April 13, 2018, in order to receive consideration under the Plan.
For more information, please contact the Distribution Agent: