Germenis et al.

On November 16, 2006, the SEC filed a lawsuit (Germenis et al. 06-CV-6153, E.D.N.Y.) against Spiro Germenis, two investment funds he created and managed (Oracle E Fund LP and Oracle J Fund LP), an investment adviser firm he operated (Oracle Services, Inc.), Oracle Evolution, LLC and Oracle Evolution Capital, LLC.  The SEC alleged that Germenis defrauded at least 25 investors out of more than $6.5 million.  According to the complaint, Germenis took money from the Oracle E Fund and Oracle J Fund, and from individual customer accounts he established through Oracle Services.  On October 2, 2008, the Court entered a default judgment against the defendants, ordering the defendants to pay $7,705,249.83, consisting of disgorgement and prejudgment interest, and ordering Germenis and Oracle Evolution to each pay a civil penalty of $480,000, and Oracle Services to pay a civil penalty of $240,000. 

For further information about the SEC’s action, you can read Litigation Release Nos. 19920 (Nov. 21, 2006) and 20785 (Oct. 20, 2008). 

On December 2, 2010, the SEC submitted a proposed Distribution Plan to the United States District Court for the Eastern District of New York to equitably distribute recovered funds to a number of defrauded investors.  The SEC has recovered approximately $229,000 in investor proceeds that have accrued, with interest, to approximately $242,000.  If the Court approves the SEC’s proposed plan, a Court-appointed distribution agent will, after payment of any tax liabilities and other fees and expenses, distribute the funds on a pro rata basis to investors named in the proposed plan. 

The SEC has sent a copy of the plan to those investors referenced in the proposed Distribution Plan.  Persons who have not received a copy of the plan who believe they may be eligible to participate in the distribution must submit, in writing under penalty of perjury, the grounds for such a claim by February 11, 2011.  Failure to do so will bar such potential claimants, who are not referenced in the proposed plan, from receiving any distribution.

Anyone who wishes to comment or object to the proposed plan must do so by writing a letter and submitting any relevant documents to the SEC by February 11, 2011, addressed to:

Dina Levy
Securities and Exchange Commission
New York Regional Office
Three World Financial Center
Room 400
New York, New York 10279 

To see documents related to the proposed distribution plan, please click on the links below.  Alternatively, to request a copy of these documents, or if you have any questions, please contact Dina Levy at (212) 336-0123.

• Scheduling Order
   
• Notice of Motion
   
• Distribution Plan
   
• Memo of Law
   
• Declaration of Stephen Johnson
   
• Account Balances
   
• Redacted investor list
   
• Proposed Order Approving Distribution

http://www.sec.gov/divisions/enforce/claims/germenis.htm