SEC v. Aimsi Technologies, Inc., et al. Case No. 05-cv-04724-LLS (S.D.N.Y.)
Aug. 11, 2022
On May 16, 2005, the SEC filed a complaint against Aimsi Technologies, Inc. (“Aimsi”), Reginald Hall (“Hall”), Harris Dempsey “Butch” Ballow (“Ballow”), Everett Bassie, Winfried Fields (“Fields”), and Bruce Charles Pollock (“Pollock”) (collectively, the “Defendants”) and named William Watkins (“Watkins”), Dolores Watkins, Wright Family Holdings, Inc. (“Wright Holdings”), Wright Family Trust (“Wright Trust”), GBY International Public Relations, Inc., BP International, Inc., Secure Releases, Inc., China Global Distribution Corp., Lines Overseas Management (“Lines”), Wonderland Capital Corp., Private Funding Corp., and Orekoya Capital Corp. (“Orekoya”) as relief defendants. The complaint alleged that, from July 2004 through at least November 2004, the Defendants violated federal securities laws by having engaged in a deliberate “pump and dump” scheme to defraud investors. The Defendants earned at least $3.1 million in profits from the fraudulent promotional campaign to drive up the price and trading volume of Aimsi stock and then selling their shares of Aimsi stock. See Complaint.
Everett Bassie, Dolores Watkins, GBY International Public Relations, Inc., BP International, Inc., Secure Releases, Inc., China Global Distribution Corp., Wonderland Capital Corp., and Private Funding Corp. were dismissed. The remaining parties are Aimsi, Hall, Ballow, Fields, and Pollock (collectively, the “Defendants”) and Watkins, Wright Holdings, Wright Trust, Lines, and Orekoya (collectively, the “Relief Defendants”).
The Defendants and Relief Defendants were ordered to pay disgorgement, prejudgment interest and civil penalties. See Final Judgments: Ballow, Wright Holdings, Wright Trust, and Lines’ Final Judgment; Pollock’s Final Judgment; Watkin’s Final Judgment; Field’s Final Judgment; Aimsi’s Final Judgment; Orekoya’s Final Judgment; and, Hall’s Final Judgment.
On January 6, 2015, the Court established a Fair Fund for the $1,169,243.61 in disgorgement, prejudgment interest, and penalties paid by and any future funds paid by the Defendants and/or Relief Defendants and appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Fair Fund. See Order for Creation of a Fair Fund and Appointment of Tax Administrator.
On October 7, 2016, the Court appointed Analytics Consulting, LLC as the Distribution Agent to oversee the administration and distribution of the Fair Fund to harmed investors.
On February 7, 2017, the Commission filed a motion to approve a plan of distribution, together with the plan of distribution (“Plan”). See the Commission’s Motion for and Order Approving Plan of Distribution.
On March 2, 2017, the Court entered an order that approved the Plan. See the Court’s Order and the approved Plan.
The Plan provides that the distribution of the Fair Fund shall be made to investors harmed by the purchase of AIMSI stock between July 1, 2004 and December 14, 2004, inclusive, due to the Defendants’ misconduct. All potentially eligible claimants must submit a proof of claim form prior to the claims bar date to be considered under the Plan.
Proof of claim forms can be found at: www.AIMSITechnologiesDistributionFund.com and must be postmarked by December 8, 2017.
On August 26, 2019, the Court entered an order reclassifying prejudgment interest as disgorgement, authorizing the disbursement of $1,075,816.19, plus accrued interest, from the Fair Fund to the Distribution Agent for distribution to harmed investors in accordance with the approved Plan, and authorizing the payment of taxes, fees, and expenses. See the Court's Order.
For more information, please contact the Distribution Agent:
Analytics Consulting, LLC
Telephone Number: 866-562-5857