SEC v. Di Nardo, et al.
Case No. 08-cv-06609-PAC (S.D.N.Y.)
On October 6, 2010, the Commission amended its complaint filed on July 25, 2008 against One or More Unknown Purchasers of Call Options for DRS Technologies, Inc. ("DRS") and One or More Unknown Purchasers of Call Options for the Common Stock of American Power Conversion Corp. ("APCC"). The amended complaint named Gianluca Di Nardo ("Di Nardo") and Corralero Holdings, Inc. ("Corralero Holdings") as the purchaser who used an omnibus account at UBS AG in Zurich, Switzerland ("UBS Zurich") to make highly profitable and highly suspicious purchases of call option contracts for the common stock of APCC that were cleared through UBS Securities LLC ("UBS Securities"). The amended complaint further named Corralero Holdings, Di Nardo, Oscar Ronzoni ("Ronzoni"), Paolo Busardo ("Busardo"), Tatus Corp. ("Tatus"), and A-Round Investment, SA ("A-Round") as the purchasers who used the same omnibus account at UBS Zurich to make highly profitable and highly suspicious purchases of call option contracts for the common stock of DRS that were also cleared through UBS Securities. See Amended Complaint.
Di Nardo, Corralero Holdings, Ronzoni, Busardo, Tatus, and A-Round are hereinafter collectively, referred to as the Defendants. The Defendants were ordered to pay a total of $4,462.184.73 in disgorgement, prejudgment interest, and penalties. The Clerk was ordered to hold the funds in an interest bearing account with the Court Registry Investment System (collectively, the "Fund"), pending further order of the Court. See Di Nardo and Corralero Holdings' Final Judgment, Tatus's Final Judgment, Busardo's Final Judgment, Ronzoni's Final Judgment, and A-Round's Final Judgment.
The Defendants have paid a total of $4,462.184.73 into the Fund for the distribution to harmed investors.
On June 24, 2011, the Court appointed Damasco & Associates LLP, as the Tax Administrator to fulfill the tax obligations of the Fund.
On September 17, 2013, the Commission filed a motion to establish a Fair Fund, approve the distribution plan, and establish notice procedures, together with a memorandum of law in support of its motion with the distribution plan ("Distribution Plan") attached thereto. See Motion to Establish Fair Fund, Approve Distribution Plan, and Establish Notice Procedures, and Memorandum in Support of the Distribution Plan.
On September 30, 2013, the Court granted the Commission's motion and entered an order that established a Fair Fund for the funds paid by the Defendants and approved the Distribution Plan. See Order Establishing Fund, Approving Distribution Plan, and Establishing Notice Procedures.
The Distribution Plan calls for the Fair Fund to be distributed among those persons or entities, who sold DRS call options positions to the Defendants between April 29, 2008 through May 7, 2008 and/or sold APCC call options positions to the Defendants between September 21, 2006 through September 22, 2006 and who suffered a loss as a result.
For more information, please contact the Commission:
Office of Distributions