SEC v. Slowey, Jr., et al.
Case No. 09-cv-04547-LDW-ETB (E.D.N.Y.)
On October 22, 2009, the SEC filed a complaint against Charles C. Slowey, Jr. (“Slowey”), Endeavor Partners, LLC (“Endeavor Partners”), Endeavor Capital Management Group, LLC (“Endeavor Capital”), Edward D. Puttick, Sr. (“Puttick”), and Advanced Planning Securities, Inc. (“APS”) (collectively, the “Real Estate Defendants”), Gregory L. Oldham (“Oldham”), Glenn R. Harris (“Harris”), and Oldham Harris, Inc. (“Oldham Harris”) (collectively, together with the Real Estate Defendants, the “Defendants”). The complaint alleged that, from 2004 through 2006, the Real Estate Defendants violated the antifraud provisions of the securities laws in connection with the sale of unregistered securities representing interests in four real estate funds to investors, many of whom were unsophisticated retirees and senior citizens. The complaint also charged the Defendants with violations of the registration provisions of the securities laws. The complaint was amended on October 16, 2012, to add Endeavor Real Estate Fund I, LLC (“Fund I”) and Endeavor Real Estate Fund II, LLC (“Fund II”) as relief defendants (collectively, the “Endeavor Funds” or “Relief Defendants”) and to reflect the dismissal of Oldham Harris. The unregistered securities sold by the Real Estate Defendants included the Endeavor Funds. See Amended Complaint.
The Court entered final judgments against each of the Defendants and Relief Defendants ordering for the payment of disgorgement, prejudgment interest, and penalties. The Clerk was ordered to hold the funds in an interest bearing account with the Court Registry Investment System (collectively, the “Fund”), pending further order of the Court. See Slowey’s Final Judgment, Endeavor Partner’s Final Judgment, Endeavor Capital’s Final Judgment, Puttick’s Final Judgment, APS’ Final Judgment, Oldham’s Final Judgment, Harris’ Final Judgment, Fund I’s Final Judgment, and Fund II’s Final Judgment.
As of January 9, 2017, a total of $30,016.00 has been paid into the Fund for the distribution to harmed investors. Any additional outstanding monies received from the Defendants and/or Relief Defendants will be added to the Fund for distribution.
On July 12, 2012, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Fund.
On March 30, 2017, the Commission filed a motion to appoint, Nichola L. Timmons, a Commission employee, as the Distribution Agent to oversee the administration and distribution of the Fund to injured investors and to approve the distribution plan, together with the distribution plan ("Distribution Plan"). See Motion with Distribution Plan.
On May 31, 2017, the Court appointed Nichola L. Timmons as the Distribution Agent of the Fund and approved the Distribution Plan. See Order Approving Distribution Plan.
The Distribution Plan provides that the distribution of the Fund shall be made on a pro rata basis to the 65 Eligible Recipients, who were harmed by the Defendants' misconduct and suffered a net loss. The Eligible Recipients Pro Rata Shares are shown on the Pro Rata Share Calculation Chart, attached as Exhibit B to the Distribution Plan.
For more information, please contact the the Distribution Agent:
Office of Distributions