SEC v. China Energy Savings Technology ,Inc. et al.
Case No. 06-cv-06402-ADS-AKT (E.D.N.Y.)
SEC v. Ling, et al.
Case No. 13-cv-05364-ERK (E.D.N.Y.)
In the Matter of Moore Stephens Wurth Frazer & Torbet LLP, et al.
Admin. Proc. File No. 3-14167
On December 4, 2006, the Commission filed a complaint against China Energy Savings Technology, Inc., New Solomon Consultants, Chiu Wing Chiu, Lai Fun Sim a/k/a Stella Sim, Sun Li, Jun Tang Zhao (collectively, the "Defendants"), and named Amicorp Development Limited, Essence City Limited, Precise Power Holdings Limited, Yan Hong Zhao, Ai Qun Zhong, and Tung Tsang as relief defendants (collectively, the "Relief Defendants"). The complaint alleged that, from 2004 to 2006, the Defendants violated federal securities laws when they orchestrated an elaborate stock manipulation scheme commonly known as a "pump and dump." The scheme realized millions of dollars in proceeds from the fraudulent receiving and selling of thousands of shares of China Energy stock. See Complaint.
The Defendants and Relief Defendants were ordered to pay a total of $39,328,064.37 in disgorgement, prejudgment interest, and penalties. See Defendants' Final Judgment and Relief Defendants' Amended Final Judgment.
On July 9, 2015, the Commission filed a motion to unfreeze previously frozen assets of the Relief Defendants and to transfer the funds to the SEC for distribution to harmed investors, establish a fair fund for the funds, appoint a tax administrator and to appoint a distribution agent. See the Commission's Motion dated 7/9/15.
On December 17, 2015, the Court granted the Commission's motion and entered an order unfreezing $4,132,675.52 of the Relief Defendants previously frozen assets and established a fair fund, of which $95,135.24 was transferred to the United States Treasury as post-judgment interest, leaving $4,037,540.28 in the fair fund for the distribution to harmed investors ("China Energy Fair Fund"). The Court's Order also appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Fair Fund and appointed Kurtzman Carson Consultants, LLC as the Distribution Agent to oversee the administration and distribution of the Fair Fund to harmed investors. See the Court's Order dated 12/17/15.
On April 21, 2016, the Commission filed a motion in a related case, SEC v. Ling, Case No. 13-cv-05364 (E.D.N.Y.), to transfer and combine the $1,457,580.85 of disgorgement collected, pursuant to the judgment against Lee Chi Ling and Perfect Genius Limited, with the China Energy Fair Fund for the distribution to harmed investors. See Motion to Transfer.
On May 18, 2016, the Court granted the Commission's motion and entered an order transferring the funds held in Ling to the China Energy Fair Fund for the distribution to harmed investors. See Order to Transfer Funds.
On August 3, 2017, in a related proceeding, In the Matter of Moore Stephens Wurth Frazer & Torbet LLP and K. Dean Yamagata, CPA, Admin. Proc. File No. 3-14167, the Commission issued an order to transfer and combine the $129,500.00 of disgorgement and prejudgment interest paid by Moore Stephens Wurth Frazer & Torbet LLP and K. Dean Yamagata, CPA with the China Energy Fair Fund for the distribution to harmed investors. See the Commission's Order: Release No. 34-81307.
On May 31, 2018, the Commission filed a motion to approve a plan of distribution, together with the plan of distribution (the “Plan”). See Motion and the Plan
The Plan provides for the distribution of the China Fair Fund to investors who were harmed by the improper conduct alleged in the SEC’s underlying lawsuit.
On August 23, 2018, the Court entered an order approving the Plan. See the Court's Order.
Claim Forms must be postmarked by June 4, 2019.
On September 8, 2020, the Commission filed a motion for an Order to transfer funds for distribution to injured investors in accordance with the Plan. See the Commission’s Motion. On April 7, 2021, the Court entered an Order authorizing the transfer of approximately $5.6 million from the Fair Fund to the Distribution Agent for distribution in accordance with the Plan. See the Court’s Order.
For more information, please contact the Distribution Agent: