SEC v. Dennis S. Herula, et al.
Case No. 02-cv-00154-ML-DLM (D.R.I.)
On April 1, 2002, the Commission filed a complaint, which was amended on April 3, 2002, against Dennis S. Herula (“Herula”), Mary Lee Capalbo (“Capalbo”), Martin D. Fife (“Fife”), Farouk A. Khan (“Khan”), Seaview Development and Holdings, LTD (“Seaview”), Michael A. Clarke (“Clarke”), Robert M. Wachtel (“Wachtel”), Johan C. Hertzog (“Hertzog”), and Charles W. Sullivan (“Sullivan”) (collectively, the “Defendants”), and named David L. Ullom (“Ullom” or “Relief Defendant”) as a relief defendant. The amended complaint alleged that, between 1999 and 2001, the Defendants violated federal securities laws in connection with a sham “investment program” that involved a fraudulent offering of securities and the misappropriation of investor funds. See Amended Complaint.
Through various judgments against the Defendants and Relief Defendant, a total of $1,573,587.77 has been collected and paid into the Distribution Fund, and any additional monies collected will be added to the Distribution Fund. See Herula’s Final Judgment, Capalbo’s Final Judgment, Clarke’s Final Judgment, Hertzog’s Final Judgment, Ullom’s Final Judgment, Seaview’s Final Judgment, Fife’s Final Judgment, Khan’s Final Judgment, Sullivan’s Final Judgment, and Wachtel’s Final Judgment.
On May 15, 2006, the Court entered an order that appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Distribution Fund.
On July 13, 2009, amended on August 28, 2009, the Commission filed a motion for an order for the Clerk of the Court to make an initial distribution. See the Commission’s Amended Motion.
On August 4, 2009, amended on September 8, 2009, the Court granted the Commission’s motion and entered an order for the Clerk of Court to disburse $1,283,500.00 from the Distribution Fund to the three identified victims. See the Court’s Amended Order.
On June 18, 2015, the Commission filed a motion and memorandum in support of an order for the Clerk of the Court to make a second distribution. See the Commission’s Motion.
On July 9, 2015, amended July 10, 2015, the Court granted the Commission’s motion and entered an order to disburse $286,102.27 from the Distribution Fund for distribution to the three identified victims. See the Court’s Order
For more information, please contact the Commission:
Office of Distributions