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SEC v. Luis Chang, et al. Case No. 14-cv-04132-ER (S.D.N.Y.)

Oct. 14, 2022

On July 28, 2014, the SEC amended its complaint filed on June 9, 2014, against Luis Chang and Everbright Development Overseas Limited (collectively, the “Defendants”). The amended complaint alleged that, from at least November 2013 through February 2014, the Defendants victimized an American mining company, Allied Nevada Gold Corporation, by furtively buying up its stock, intentionally disseminating false press releases about a potential tender offer for the mining company, and then selling its shares into a market inflated by their fraudulent scheme. See Amended Complaint.

Collectively, the Defendants were ordered to pay a total of $5,875,583 in 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 Defendants’ Final Judgment.

The Defendants have paid a total of $5,875,583 into the Fund for the distribution to harmed investors. 

On May 17, 2016, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Fund. 

On June 21, 2016, the Court created a Fair Fund for the $5,875,583 in disgorgement, prejudgment interest, and penalties paid by the Defendants and appointed Rust Consulting, Inc. as the Distribution Agent to oversee the distribution of the Fair Fund to harmed investors. See Order to Establish Fair Fund and Appoint a Distribution Agent.

On March 31, 2017, the Commission filed a motion to approve the distribution plan, together with the distribution plan ("Distribution Plan").  See Motion with Distribution Plan.

On April 3, 2017, the Court approved the Distribution Plan. See Order Approving Distribution Plan.

The Distribution Plan provides that the distribution of the Fair Fund shall be made, pursuant to a claims-made process, to those Eligible Claimants, who were harmed by the Defendants' misconduct and suffered a net loss as calculated pursuant to the Plan of Allocation, attached as Appendix 1 to the Distribution Plan.

Claim Forms can be found at: and must be postmarked by October 14, 2017.

On May 8, 2019, the Court entered an order authorizing the disbursement of $1,358,908.66 from the Fair Fund to the Distribution Agent for distribution to harmed investors in accordance with the approved Plan. See the Court's Order.

For more information, please contact the Distribution Agent: 

Rust Consulting, Inc.
Telephone Number: 866-933-8161

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