SEC v. Malarz, et al.
Case No. 11-cv-08803-RC (N.D. Ill.)
On December 12, 2011, the SEC filed a complaint against Marcin Malarz ("Malarz"), Jacek Sienkiewicz ("Sienkiewicz"), and Arthur Lin ("Lin") (collectively, the "Defendants") and named Gloria Lin as a relief defendant. The complaint alleged that, from at least September 2006 through at least January 2009, the Defendants orchestrated a ponzi-type scheme and raised at least $14,380,000 from at least 43 investors through the fraudulent unregistered offer and sale of promissory notes issued by entities owned and controlled by Malarz and/or Sienkiewicz. Malarz Equity Investments, LLC ("Malarz Equity") was the primary entity through which the scheme was perpetrated. Malarz and Lin's wife, Gloria Lin, were the members of Malarz Equity, and Lin was an officer of Malarz Equity. See Complaint.
Lin and Gloria Lin (collectively, the "Lins") were ordered to jointly and severally pay $158,240.00 in disgorgement and prejudgment interest. In the Lins' final judgments, the Clerk was ordered to deposit the funds into an interest bearing account managed by the Court, and the funds were to be held together with any interest and income earned thereon (collectively, the "Fund"), pending further order of the Court. See Lin's Final Judgment and Gloria Lin's Final Judgment.
The Lins have paid a total of $43,500.00 of the amount ordered into the Fund and any additional outstanding monies received from the Lins' will be added to the Fund.
On February 20, 2018, the Court entered an order approving the Commission’s motion to disburse frozen funds to be paid against the Lin’s outstanding judgment. See the Court’s Order.