The United States Securities and Exchange Commission (“SEC” or “Commission”) established a Distribution Fund as a result of the SEC v. Abatement Corp. Holding Company Limited, and Relief Defendants Brenda M. Davis (“Davis”) and International Balanced Fund (“IBF”) (collectively, the “Defendants”) enforcement action.
The Commission’s allegations against Defendants Abatement Corp. Holding Company Limited (“Abatement”), and Relief Defendants Brenda M. Davis (“Davis”) and International Balanced Fund (“IBF”) are that Abatement, through its former principal, Joseph Laurer (who died prior to the filing of this action), operated a Ponzi scheme, in which approximately fifty (50) investors invested over $4.6 million in IBF and another fund controlled by Abatement. The Complaint alleged, inter alia, that Laurer and Abatement violated Section 17(a) of the Securities Act of 1933, 15 U.S.C. § 77q(a); and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), and 17 C.F.R. § 240.10b-5. The Complaint also alleged that Laurer misappropriated more than $1.2 million of investor funds to funnel money and property to Davis, his wife.
On September 12, 2014, the Court granted the SEC’s emergency motion for an asset freeze, freezing assets of Abatement held domestically and also offshore at the Turks and Caicos Banking Company Limited (“TCBC”), the assets of IBF at Bank of America and Davis’ assets.
A Final Judgment was entered against Abatement and IBF on October 29, 2014. Abatement was ordered to pay a total of $3,761,736.15 and IBF to pay a total of $1,137,852.62 in disgorgement and prejudgment interest. A Final Judgment was entered into March 31, 2015 against Davis for $525,000.
Based on documents obtained during the course of the investigation, the SEC identified injured investors and calculated eligible loss amount.
On May 20, 2015, the Court appointed Kurtzman Carson Consultants LLC (“KCC”) as Distribution Agent, to assist in overseeing the administration and distribution of the Distribution Fund in coordination with Commission staff, pursuant to the terms of the Distribution Plan.
The Distribution Plan provides that disgorgement paid to the SEC less administrative costs be used to form the Distribution Fund. Approximately, $1,382,000 comprises the Distribution Fund.
The Distribution Fund is a “Qualified Settlement Fund” (“QSF”) as defined in U.S. Treas. Reg. Sec. 1.468B-1 et seq. This distribution is intended to compensate you for losses incurred with respect to your investment in Abatement as a result of the violations described in the SEC’s Complaint.
Participation in the Abatement Distribution Fund will not result in the release of any rights or potential claims an investor may have against any party (other than with respect to the Distribution Agent), including, but not limited to, any party’s past and present directors, officers, promoters, advisers, agents, Affiliates, nominees, assigns, creditors, or controlled entities.
If you have any questions about the Distribution Fund, or your inclusion as an injured investor, please contact the Distribution Agent by phone at (415) 798-5915 or by email to info@AbatementDistributionFund.com.