In the Matter of David F. Bandimere Admin. Proc. File No. 3-15124
Sept. 21, 2022
On November 22, 2019, the Commission settled a previously instituted cease-and-desist proceeding (the “Order”) against David F. Bandimere (the “Respondent”). In the Order, the Commission found that between 2006 and 2010, the Respondent violated certain antifraud provisions of the Securities Act while operating as an unregistered broker in selling unregistered investments in IV Capital Ltd. and Universal Consulting Resources LLC, two Ponzi schemes which the Commission brought actions against in 2011 and 2010 respectively. In the Order, the Commission ordered the Respondent to pay disgorgement of $370,000 and civil penalties of $130,000 to the Commission, pursuant to a payment plan detailed therein. The Commission also created a Fair Fund (the “Fair Fund”), pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty, along with the disgorgement collected could be distributed to investors harmed by the Respondent’s conduct described in the Order. See the Commission’s Order: Release No. 33-10728.
The Fair Fund is comprised of the $500,000 paid by the Respondent and has been deposited into an interest-bearing account at the U.S. Treasury’s Bureau of Fiscal Service. All interest will accrue for the benefit of the Fair Fund.
On November 5, 2020, the Commission issued an order appointing Miller Kaplan Arase LLP as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-90349.
On August 31, 2021, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The Proposed Plan proposes Terry Miller, a Commission employee, serve as the Fund Administrator to oversee the administration and distribution of the Fair Fund. The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-92825 and the Proposed Plan.
The Proposed Plan provides that the distribution of the Fair Fund shall be made to those investors who were defrauded by the Respondent’s fraudulent conduct and suffered harm as calculated by the Plan of Allocation used in the Proposed Plan.
On October 26, 2021, the Commission issued an order approving the Proposed Plan and simultaneously posted the approved plan of distribution (the “Plan”). See the Commission’s Order: Release No. 34-93425 and the Plan.
On March 13, 2023, the Commission issued an order approving the disbursement of $481,536.24 from the Fair Fund for distribution to eligible investors. See the Commission’s Order: Release No. 34-97122.
For more information, please contact the Commission:
Office of Distributions