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 Fair Fund to injured investors. As of December 28, 2016, there is approximately $1,376,816, prior to deducting taxes, fees and expenses of the Tax administrator and fees and expenses of the Distribution Agent, available for distribution to injured investors. See Order to Establish Fair Fund and Appoint a Distribution Agent.
For more information, please contact the Distribution Agent: