U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 22598 / January 23, 2013

Securities and Exchange Commission v. Christopher Castaldo, et al., Civil Action No. 08 Civ. 8397 (JSR) (S.D.N.Y.)

JUDGMENT ENTERED AGAINST VISION SECURITIES, DANIEL JAMES GALLAGHER, CHRISTOPHER CASTALDO, AND CORPORATE COMMUNICATIONS CORP. ; CLAIMS AGAINST FRANK ZANGARA DISMISSED

On August 17, 2009, U.S. District Court Judge Jed S. Rakoff issued a Memorandum Order and Final Judgment ("Order") with respect to Daniel James Gallagher, Vision Securities, Christopher Castaldo, and Corporate Communications Corp. The Order was entered following a hearing on remedies and a trial that had resulted in jury verdicts against Gallagher, Vision, and Castaldo. Prior to trial, a default judgment had been entered against defendant Corporate Communications Corp. and the Commission had voluntarily dismissed with prejudice its claims against defendants Frank Zangara and B.H.I. Group, Inc.

Judge Rakoff declined to impose injunctive relief against any of the defendants, but ordered the following monetary relief:

  • As to Castaldo: $208,500 in disgorgement; $48,225.29 in prejudgment interest; and $24,000 in civil money penalties, with payments of disgorgement and prejudgment interest to be made in monthly installments in amounts based on Castaldo's gross income and civil penalties to be paid in monthly installments of $1,000.
     
  • As to Gallagher and Vision Securities, jointly and severally: $126,466.91 in disgorgement, $29,251.32, in prejudgment interest, and $24,000 in civil money penalties, with payments of disgorgement and prejudgment interest to be made in monthly installments in amounts based on those defendants' gross income, minus an amount reflecting Gallagher's support obligations to his ex-wife and children.

For further information about the case, see Litigation Releases No. 20764 (October 1, 2008) and 21146 (July 22, 2009).