SEC v. John Babikian Case No. 14-cv-1740-PAC (S.D.N.Y.)
Oct. 14, 2022
On March 13, 2014, the Commission filed a complaint (the “Complaint”) against John Babikian (the “Defendant”). The Complaint alleged that, beginning at approximately 2:30 p.m. (Eastern) on Thursday, February 23, 2012, the Defendant violated federal securities laws by directly and indirectly causing touting materials to be widely disseminated over the Internet concerning America West Resources Inc. See Complaint.
The Defendant was ordered, and has paid, a total of $3,730,000.00 in disgorgement, prejudgment interest, and penalty. The Commission was ordered to hold all funds, together with interest and income earned thereon, pending further order of the Court. See Defendant’s Final Judgment.
On January 19, 2017, the Court entered an order that established a Fair Fund for the $3,730,000.00 paid by the Defendant (the “Fair Fund”) and appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Fair Fund and Epiq Systems, Inc. as the Distribution Agent to oversee the administration and distribution of the Fair Fund to harmed investors. See the Court’s Order.
On August 14, 2018, the Commission filed a motion to approve a distribution plan, which details the distribution plan (the “Plan”). See the Commission’s Motion with the Plan.
On September 4, 2018, the Court entered an order approving the Plan. See the Court’s Order.
The Plan provides that the distribution of the Fair Fund shall be made to Eligible Recipients on a pro rata basis for the harm created by Defendant’s conduct.
For more information, please contact the Distribution Agent: