SEC v. Emanuel L. Sarris, Sr., et al. Case No. 12-cv-04272 – TON (E.D. Pa.)
Sept. 21, 2022
On July 27, 2012, the Commission filed a complaint (the “Complaint”) against Emanuel L. Sarris, Sr. (“Sarris”) and Sarris Financial Group, Inc. (Sarris Financial”) (collectively, the “Defendants”) for violations of the federal securities laws. The Commission alleged that, from 2001 through 2009, the Defendants facilitated a Ponzi scheme by inducing over 70 individuals to invest over $30 million in private funds that purportedly traded in foreign currencies, called the “Kenzie Funds.” In fact, however, the Kenzie Funds were central to a Ponzi scheme that defrauded at least 400 investors of more than 105 million. See Complaint.
On January 26, 2016, the Court entered a Final Judgment as to the Defendants. The Final Judgment, to which the Defendants consented, required the Defendants, jointly and severally, pay a civil penalty of $380,000.00. The Final Judgment provides that the Commission may propose a plan to distribute the civil penalty pursuant to the Fair Fund provisions of the Sarbanes-Oxley Act of 2002, as amended. Defendants have since paid the penalty in full and the funds reside in an interest bearing account at the U.S. Treasury. See the Defendants’ Final Judgment.
By Order entered December 22, 2017, the Court appointed Miller Kaplan Arase LLP as Tax Administrator for all funds under the Court's jurisdiction.
On December 10, 2019, the Commission filed with the Court a Motion and supporting Memorandum seeking an Order establishing a Fair Fund, Approving a Distribution Plan, and Appointing a Distribution Agent. See the Commission's Motion and Memorandum.
On January 10, 2020, the Court issued an Order granting the Commission’s Motion. See the Court’s Order and the approved Plan.
On February 13, 2020, the Court issued an Order authorizing disbursement pursuant to the approved distribution plan (the “Plan”). See the Court’s Order.
The Commission has completed the distribution in accordance with the approved Plan.
On March 3, 2023, the Commission filed a Motion for an Order Approving the Final Accounting, Directing the Disposition of Remaining Funds, Discharging the Distribution Agent, and Terminating the Fair Fund. See the Motion.
On May 2, 2023, the Court issued an Order granting the Commission’s motion and closing the case. See the Court’s Order. [Link to Order].