In the Matter of Peter R. Kohli, et al.
Case No. 16-cv-05143-JLS (E.D. Pa)
On September 28, 2016, the Commission filed a complaint against Peter R. Kohli ("Kohli"), DMS Advisors, Inc., and Marshad Capital Group, Inc. (collectively, the "Defendants"), and named The DMS Funds ("DMS") as a relief defendant. The complaint alleged that, from 2012 through 2015, the Defendants lied in four distinct ways to induce over 120 investors to invest at least $3.2 million in DMS, which consisted of four emerging markets mutual fund series, all of which were entities owned or controlled by Kohli. See Complaint
The Court entered final judgments against the Defendants and Relief Defendant. Defendants and Relief Defendants were ordered to pay a total of $ 4,321,873.09 in disgorgement, prejudgment interest and penalties. In each of the final judgments, the Commission was ordered to hold all funds, together with interest and income earned thereon, pending further order of the Court. See Final Judgement - Marshad, Final Judgement - DMS Advisors, Amended Final Judgment - Peter R. Kohli, Amended Final Judgment - DMS Funds.
As of June 5, 2020, a total of $565,577.50 in disgorgement and prejudgment interest has been collected (the “Distribution Fund”). Any future funds paid pursuant to the Defendants’ or Relief Defendant’s judgments will be added to the Distribution Fund. The Distribution Fund is currently deposited in an interest-bearing account with the U.S. Department of the Treasury’s Bureau of the Fiscal Service.
On May 2, 2018, the Court entered an Order appointing Miller Kaplan Arase LLP as the Tax Administrator for the Distribution Fund. See the Court’s Order.
On June 24, 2020, the Court entered an Order approving a Distribution Plan (the “Plan”) and appointing Keshia W. Ellis, a Commission employee, as the Distribution Agent of the Distribution Fund. See the Court’s Order and the Plan.
The Plan provides for the distribution of the Distribution Fund to Eligible Recipients who incurred net losses from investments made, resulting from Defendants’ conduct as alleged in the Complaint.
On October 9, 2020, the Commission filed a motion requesting an order to disburse $565,577.50, comprising the Net Distribution Fund from the Distribution Fund to eligible recipients in accordance with the Plan. See the Commission’s Motion in Support.
On October 27, 2020 the Court entered an Order approving the disbursement of the Net Distribution Fund from the Distribution Fund for distribution to eligible recipients in accordance with the Plan. See Order.
The distribution in this matter is ongoing.
For more information, please contact the Commission:
Office of Distributions