SEC v. Bridge Premium Finance, LLC, et al.
Case No. 12-cv-02131-JLK-BNB (D. Colo.)
On September 19, 2012, the Commission amended its complaint filed on August 14, 2012, against Bridge Premium Finance, LLC (f/k/a Berjac of Colorado, LLC) ("BPF"), its principal, Michael J. Turnock ("Turnock"), and its chief financial officer, William P. Sullivan, II ("Sullivan") (collectively, the "Defendants") to name Jane K. Turnock as a relief defendant; however, she was later dismissed from the case with prejudice. The amended complaint alleged that, from approximately 1996 through 2012, the Defendants violated the federal securities laws by perpetrating a Ponzi scheme through which more than $15.7 million was raised through an unregistered offering of promissory notes purportedly to provide capital for BPF's insurance premium financing business. See Amended Complaint.
The Defendants were ordered to pay a total of $19,109,675.58 in disgorgement, prejudgment interest, and penalties. The Commission was ordered to hold all funds, together with interest and income earned thereon (collectively, the "Fund"), pending further order of the Court. See BPF's Final Judgment, Turnock's Final Judgment, and Sullivan's Amended Final Judgment.
As of January 12, 2017, the Defendants have paid a total of $546,298.00 of the amounts ordered into the Fund for the distribution to harmed investors.
On August 22, 2014, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Fund.
On May 7, 2015, the Court established a Fair Fund for the $546,298.00 paid by the Defendants and for any future funds paid by the Defendants, and appointed Gilardi & Co. LLC as the Distribution Agent to oversee the administration and distribution of the Fair Fund to harmed investors. See Order to Establish Fair Fund and Appoint a Distribution Agent.
On February 8, 2016, the Commission filed a motion to approve the distribution plan, together with the proposed distribution plan ("Distribution Plan"). See Motion For Order Approving Distribution Plan and Distribution Plan.
On February 8, 2016, the Court approved the Distribution Plan. See Order Approving Distribution Plan.
The Distribution Plan provides that the distribution of the Fair Fund shall be made on a pro rata basis to the 52 Eligible Investors, who were harmed by the Defendants' misconduct and suffered a net loss.
On October 21, 2016, the Commission filed a motion and memorandum in support for an order to disburse $510,820.00 from the Fair Fund to the Distribution Agent for the distribution to Eligible Investors and for the Court to authorize payment of the fees and expenses of the Distribution Agent in the amount of $4,361.77. See Commission's Motion.
On October 21, 2016, the Court granted the Commission's motion and entered an order to disburse $510,820.00 from the Fair Fund for the distribution to Eligible Investors and authorized the payment of $4,361.77 from the Fair Fund to pay the fees and expenses of the Distribution Agent. See Court's Order.
A total of $510,015.48 has been distributed to Eligible Recipients in accordance with the Plan and the distribution is now complete. On May 6, 2020, the Commission filed a motion for an order approving the final accounting, terminating the Fair Fund, discharging the Distribution Agent, and authorizing the transfer of $2,749.11 in residual funds to the U.S. Treasury. See the Commission’s Motion. On May 13, 2020, the Court entered an order granting the Commission’s motion. See the Court’s Order.