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SEC v. Harrison Katzen Case No. 16-cv-06606 (E.D.N.Y.)

Oct. 7, 2022

On November 29, 2016, the Commission filed a complaint (the “Complaint”) against Harrison Katzen (“Defendant”). The Complaint alleged that, from at least 2012 to mid-2013, the Defendant violated federal securities laws by preparing offering materials used by others to solicit potential investors that touted the purported issuers of the securities being offered and the safety and benefits of investing in their securities. These offering materials contained numerous materially false and misleading statements. The two fraudulent schemes that Defendant participated in defrauded approximately 60 investors located in the United States and abroad of approximately $3.2 million. See Complaint.

On February 6, 2017, the Court entered a final judgment ("Judgment") in which the Defendant was ordered, and has paid, a total of $350,000.00 in disgorgement, prejudgment interest, and a civil penalty to the Commission. The Commission was ordered to hold all funds, together with interest and income earned thereon (collectively, the “Fund”), pending further order of the Court.

On January 29, 2018, the Court entered an order that established a Fair Fund for the $350,000.00 in disgorgement, prejudgment interest, and penalties paid by the Defendant and appointed Miller Kaplan Arase LLP as the Tax Administrator to fulfill the tax obligations of the Fair Fund. See the Court’s Order

On August 26, 2019, the Court entered an order that appointed Analytics Consulting, LLC as the Distribution Agent to oversee the administration and distribution of the Fair Fund to harmed investors. See the Court’s Order

On July 10, 2023, the Commission filed a motion to approve a distribution plan, which details the distribution plan (the “Plan”). See the Commission’s Motion and the Plan.  

On, July 26, 2023, 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 those investors who suffered losses, as calculated in accordance with the Plan of Allocation attached as Exhibit A to the Plan, on debt bonds issued by Altmark Holdings Ltd. and equity securities issued by PDL Portfolio (XIX) Ltd. purchased from May 1, 2012 through April 30, 2013. 

For more information, please contact the Commission:

Office of Distributions

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