SEC v. Gansman, et al.
Case No. 08-cv-04918-PKC (S.D.N.Y.)

On May 29, 2008, the SEC filed a complaint against James E. Gansman (“Gansman”), Donna B. Murdoch (“Murdoch”), and Gerald L. Brodsky (“Brodsky”) (collectively, the “Defendants”).  The complaint alleged that, from the summer of 2006 through the fall of 2007, the Defendants violated federal securities laws by engaging in insider trading. See Complaint.

Gansman was ordered to pay a total of $249,855.00 in disgorgement and prejudgment interest. 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 Gansman’s Final Judgment. Murdoch’s monetary sanctions were waived. See Murdoch’s Final Judgment. Brodsky was ordered to pay a total of $265,834.00 in disgorgement, prejudgment interest, and penalties and the Clerk was ordered to hold the monies in the Fund. See Brodsky’s Final Judgment.

As of January 31, 2017, $249,855.00 has been paid into the Fund for the distribution to harmed investors.

On February 17, 2017, the Court appointed Miller Kaplan Arase LLP as the Tax Administrator to fulfill the tax obligations of the Fund.

On March 24, 2017, the Commission filed a motion to appoint a Michael Lim, a Commission employee, as the Plan Administrator of the Fund, approve a Distribution Plan, authorize payment of future taxes and the fees and expenses of the Tax Administrator, and transfer funds for distribution. See Motion with Distribution Plan.

On March 28, 2017, the Court approved the Commission’s motion as filed. See the Court’s Order.

The Distribution Plan provides that the Fund shall be distributed to the two individual customers who were identified as being harmed due to the Defendants’ misconduct.

For more information, please contact the Plan Administrator:

Michael Lim
U.S. Securities and Exchange Commission
Office of Distributions
100 F Street N.E.
Washington, DC 20549-5876
Telephone Number: 202-551-4659
Email: LimM@sec.gov