U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19158 / March 28, 2005
Securities and Exchange Commission v. Measurement Specialties, Inc., and Kirk J. Dischino, 04-Civ-3000 (D.N.J.) (KSH)
ORDER ENTERED DIRECTING DISTRIBUTION OF DISGORGEMENT AND PENALITY FUNDS COLLECTED IN SEC ENFORCEMENT ACTION
On March 18, 2005, the Honorable Katharine S. Hayden, United States District Judge, District of New Jersey, entered an order approving the Commission's plan to distribute disgorgement, prejudgment interest, and civil penalties paid by defendants Measurement Specialties, Inc. (MSI) and Kirk J. Dischino in connection with the defendants' settlement of the Commission's civil enforcement action against them. SEC v. Measurement Specialties, Inc., and Kirk J. Dischino, 04 Civ. 3000 (D.N.J.) (KSH).
The distribution plan provides for the establishment of a distribution fund in the amount of $1,453,401 plus accrued interest, and the appointment of Berdon Claims Administration LLC, the claims administrator of the settlement distribution fund in In re Measurement Specialties, Inc. Securities Litigation, 02 Civ. 1071 (D.N.J.) (KSH) ("MSI Class Action"), as the Commission's special agent to administer the distribution fund. The Commission's plan further provides that after the special agent has filed tax returns, all of the money in the distribution fund, less taxes, court administrative costs, and related expenses, will be distributed on a pro rata basis to the class members who have qualified to receive funds under the class allocation plan approved by the court in the MSI Class Action. Questions regarding the distribution plan should be directed to Michael Rosenbaum of Berdon Claims Administration LLC, P.O. Box 9014, Jericho, NY 11753.
On June 28, 2004, the Commission filed the action, charging MSI with accounting fraud, and its former chief financial officer, Dischino, with accounting fraud and insider trading. Both defendants agreed to settle the Commission's charges, without admitting or denying the allegations. Pursuant to the terms of the final consent judgment entered against them, MSI paid $1 in disgorgement and a $1 million civil penalty, and Dischino paid disgorgement and a civil penalty totaling in excess of $450,000. Dischino also agreed to be suspended from appearing or practicing before the Commission as an accountant, Exchange Act Release No. 49983 (July 8, 2004).
A copy of the Court's Order (PDF format, 215 KB) approving the Commission's plan may be found at the Commission's website. For additional information see Litigation Release No. 18765 (June 28, 2004), and Exchange Act Release No. 49984 (July 8, 2004).