SEC v. Golden State Equity Investors, Inc.
Case No. 09-cv-01307 (MH) (S.D. Tex.)
On April 30, 2009, the Commission filed a complaint against Golden State Equity Investors, Inc. (“Defendant”). The complaint alleged that, from June 2005 to September 2006, the Defendant violated federal securities laws by engaging in the offer and sale of Grifco International, Inc. securities in unregistered stock transactions. See Complaint.
The Defendant was ordered to pay a total of $1,577,579 in disgorgement, prejudgment interest and penalties. The Clerk was ordered to hold all funds in an interest bearing account with the Court Registry Investment System (collectively, the “Fund”), pending further order of the Court. See Defendant’s Final Judgment.
The Defendant has paid a total of $1,577,579 into the Fund for distribution to harmed investors.
On May 22, 2012, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Fund.
On November 2, 2012, the Court entered an order to create a Fair Fund for the disgorgement, prejudgment interest and penalties paid by the Defendant and appointed RG/2 Claims Administration, 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 Distribution Agent.
On March 26, 2013, the Court entered an order to approve the Distribution Plan. See Order Approving Distribution Plan.
On February 4, 2015, the Court entered an order that directed the Clerk of the Court to disburse the Fair Fund, less costs, to the Distribution Agent for distribution to Eligible Claimants in accordance with the order and the Plan. See the Court’s Order.
For more information, please contact the Distribution Agent.