Securites and Exchange Commission
Filing
82
Order granting stipulation regarding payment of income taxes and of tax preparation fees, Dkt. No. 80. Signed by Judge James Donato on 5/23/2017. (jdlc3S, COURT STAFF) (Filed on 5/23/2017)
JINA L. CHOI (NY Bar No. 2699718)
JOHNS. YUN (CA Bar No. 112260)
2 yunj@sec.gov
SHEILA E. O'CALLAGHAN (CA Bar No. 131032)
3 ocallaghans@sec.gov
1
Attorneys for Plaintiff
SECURITIES AND EXCHANGE
5 COMMISSION
44 Montgomery Street, Suite 2600
6 San Francisco, California 94104
Telephone: (415) 705-2468
7 Telecopy: (415) 705-2501
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8
UNITED STATES DISTRICT COURT
9
NORTHERN DISTRICT OF CALIFORNIA
SAN FRANCISCO DIVISION
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SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
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v.
14
15
16
TERENCE M. COXON and WORLD
MONEY MANAGERS,
Defendants.
17
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Miscellaneous Action No.
CV 04-0145-MISC. MHP
PLAINTIFF'S AND DEFENDANTS'
STIPULATION AND PROPOSED ORDER
REGARDING PAYMENT OF INCOME
TAXES AND OF TAX PREPARATION
FEES; SUPPORTING DECLARATIONS
OF JUDE P. DAMASCO
Date: N/A
Time: N/A
Judge:
Courtroom: TBD
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STIPULATION FOR ORDER
Plaintiff Securities and Exchange Commission ("Commission") and defendants
Terrence M. Coxon ("Coxon") and World Money Managers ("World Money"), by and
through their attorneys, hereby enter into the following Stipulation Regarding Payment of
Income Taxes and of Tax Preparation Fees (the "Stipulation").
On November 30, 2015, this Court entered a Stipulated Order authorizing the
appointment of the accounting firm of Damasco & Associates, LLP to serve as the tax
administrator for the amounts in the court registry for this proceeding. Docket No. 79. The
Stip. To Pay Taxes
CV 04-0145-MISC MHP
1
Court authorized Damasco & Associates, LLP to charge up to $1800.00 per tax year to file the
2 necessary fonns and make the necessary payments under the Internal Revenue Code.
3 Damasco & Associates might also bill for time involving negotiations with the Internal
4
5
Revenue Service to reduce or abate any interest or penalty charges. Id.
As shown in the first Declaration of Jude P. Damasco, which is attached as Exhibit 1,
6 the Damasco & Associates firm has determined that taxes are owed in the following amounts
7 for the specified tax years:
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9
10
11
12
13
14
15
16
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Tax Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Tax Due
$ 1,852.00
$ 7,145.00
$ 2,350.00
$ 157.00
$
5.00
$
6.00
3.00
$
$
4.00
$
3.00
$
2.00
$
2.00
$
22.00
Total Taxes: $11,551.00
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Plaintiff and Defendants agree that these tax amounts appear to be appropriate and should be
19
paid, per the instructions of the Damasco & Associates finn, from the funds in the court's
2 0 registry for this case.
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As shown in the second Declaration of Jude P. Damasco, which is attached as Exhibit
2 2 2, the Damasco & Associates firm has incurred the following fees for preparing the tax returns
2 3 for each of the specified tax years:
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Tax Year
2005
2006
2007
2008
2009
Stip. To Pay Taxes
CV 04-0145-MISC. MHP
Preparation Fees
$1,800.00
$1,800.00
$1,800.00
$ 850.00
$ 850.00
-2-
2
3
4
2010
2011
2012
2013
2014
2015
2016
$
$
$
$
$
$
$
Total Fees:
1
850.00
850.00
850.00
850.00
850.00
850.00
850.00
$13,050.00
6 Additionally, Damasco & Associates has incurred $16.80 in costs for a total of$13,066.80 in
7 total fees and costs for preparing the necessary tax returns. Plaintiff and Defendants agree that
8 these tax administrator fees appear appropriate and should also be paid, per the instructions of
9 the Damasco & Associates firm, from the funds in the court's registry for this case.
10
At the current time, there is $29,977.28 remaining in the court's registry for this case.
11
After payment of the $11,551.00 in income taxes and $13,066.80 in tax preparation fees and
1 2 costs (for a total of$24,617.80) from the court' s registry, there will be a remaining balance of
1 3 $5,359.48 in the court's registry. This amount may be used to pay potential late fees on the
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taxes owed and to pay additional administrative fees, with any remaining balance paid to the
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Permanent Portfolio Fund.
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DATED: May 17, 2017_
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U. S. SECURITIES AND EXCHANGE
COMMISSION
JohnS. Yun
JohnS. Yun
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Attorney for the United States Securities &
Exchange Commission
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JOHN W. COTTON
GARTENBERG, GELFAND & HAYTON LLP
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John W Cotton (with authorization)
John W. Cotton
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Attorneys for Terence M. Coxon
and World Money Managers
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Stip. To Pay Taxes
CV 04-0145-MISC. MHP
-3-
1
ORDER REGARDING PAYING TAXES AND ADMINISTRATOR FEES
2
Good cause appearing from parties' Regarding Payment oflncome Taxes and of Tax
3 Preparation Fees (the "Stipulation") and from the Declarations of Jude P. Damasco that are
attached as Exhibits 1 and 2, the Court finds that it is appropriate for the Clerk of the Court to
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release funds from the court's registry for this matter to pay income taxes and tax
administrator fees. It is therefore ordered:
1.
To pay income taxes, the Clerk of the Court shall promptly issue a check in the
amount of$11,551.00 made payable to "Damasco & Associates, Trust Account" from the
funds in the court's registry for this case and shall mail the check to Damasco & Associates
c/o Miller Kaplan Arase, LLP, 314 South River Street, Suite 201, Hailey, ID 83333. The
check shall also contain the notation "xx-xxx0621" as being the Employer Identification
11 Number for SEC v. Coxon Disgorgement Fund.
12
2.
To pay tax administrator fees and costs, the Clerk of the Court shall promptly
13 issue a separate check in the amount of$13,066.80 made payable to "Damasco & Associates
14
LLP" from the funds in the court's registry for this case and shall mail the check to Damasco
15 & Associates LLP, 314 South River Street, Suite 201, Hailey, ID 83333.
Judge, United States District Court
NO
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RT
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J u d ge J a
ER
mes Do
n a to
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Stip. To Pay Taxes
CV 04-0145-MISC. MHP
-4-
A
H
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R NIA
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VED
APPRO
FO
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S DISTRICT
TE
C
TA
LI
DATED: May 23
3434_ , 2017
UNIT
ED
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S
SO ORDERED.
RT
U
O
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N
D IS T IC T
R
OF
C
EXHIBIT 1
II
DECLARATION OF .JUDE P. DAMASCO IN SUPPORT OF
REQUEST TO MAKE TAX PAYMENTS
I, Jude P. Damasco, am over eighteen years of age and state the following facts which I
know of my own personal knowledge.
5
1.
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part of Miller Kaplan Arase, LLP, located at 700 Monte Vista Lane, Half Moon Bay, CA
7
940 I 9. I am a certified public accountant.
8
2.
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Fund ("Fund") in Plaintiffs and Defendants' Stipulation and Order Regarding Disbursement of
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Funds and Appointment of Tax Administrator, Case No. 3:04-mc-00145-MHP, filed on
11
November 30, 20 I 5.
12
.).
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$11,551.00 in federal tax liabilities for the years 2005 through 2016. These tax payments are
14
-.
I am the managing partner of Damasco & Associates LLP ("Damasco") which is now
Damasco was appointed as Tax Administrator for the SEC v Coxon Disgorgement
As Tax Administrator, Damasco has determined that the Fund owes a total of
. due as soon as possible. :rhe breakdown is as follows:
Tax Due
15
Due Date
16
FortheTax Year2005
$ 1,852.00
ASAP
17
For the Tax Year 2006 $ 7,145.00
ASAP
18
For the Tax Year 2007 $ 2,350.00
ASAP
19
For the Tax Year 2008 $
I 57.00
ASAP
For the Tax Year 2009 $
5. 00
ASAP
FortheTax Year2010 $
6.00
ASAP
For the Tax Year 2011
$
3.00
ASAP
For the Tax Year 2012
$
4.00
ASAP
For the Tax Year 20 I 3 $
3.00
ASAP
$
2.00
ASAP
20
21
22
23
24
25
FortheTax Year2014
-I-
For the Tax Year 2015 $
ASAP
For the Tax Year 2016 "'-$---= .0-"2=2""" 0
2
2.00
ASAP
Total Tax Due: $J1,551.00
4.
A check in the amount of $11 ,551.00 should be made paya ble to " Damasco &
5
Associates, Trust Account" and sent to Damasco c/o Miller Kaplan Arase, LLP, 314 South
6
River Street. Suite 201 , Hailey, ID 83333. The check should be received in our office as soon
7
as possible.
8
5.
The check will be deposited into a trust account from which the tax payments will be
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-2 -
EXHIBIT 2
DECLARATION OF .JlJDE P. DAMASCO IN SUPPORT OF FEE REQUEST
2
I. Jude P. Damasco. am over eighteen years of age and state the following facts which I
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kn O\v of my own personal knowledge .
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1.
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part of Miller Kaplan Arase, LLP, located at 700 Monte Vista Lane, Half Moon Bay, CA
7
94019. I am a certified public accountant.
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2.
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Fund ("Fund ") in Plaintiffs and Defendants' St ipulation and Order Regarding Disbursement of
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Funds and Appointment of Tax Administratorl Case No. 3:04-mc-00 145-MHP, filed on
II
November 30. 2015 .
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-'·
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copy of our invoice for tax compliance services performed on behalf of the Fund.
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4.
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to the instructions Iis ted on the attached invoice.
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...
I am the managing partner of Damasco & Associates LLP ("Damasco'' ) which is now
Damasco was appointed as Tax Adm inistrator for the SEC v Coxon Disgorgement
Pursuant to our engagement agreement with the SEC, attached is a true and correct
Please remit payment in the amount of $13,066.80 via wire transfer or check according
Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the foregoing is
true and correct. Executed on May II, 2017 in HalfMoon Bay, California.
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-1-
-·
[) /\ rv1 i\
s(' ()
----------- · - - -
ASS()(' I 1\.f'ES LLP
'"" ;
f
I {. I
( : Ct
~ 5 I,J
Now A Part of Miller Kaplan Arase LLP
314 S River Street, Suite 201 Hailey, 10 83333
, ~ I -
1
(
"'•'
,
'•i
:;!~
650-7 26-4100
JohnS . Yun
SEC v Coxon Disgorgement Fund
U.S. Secunties & Exchange Commission
San Francisco Regional Office
44 Montgomery Street, Suite 2600
San Francisco, CA 94104
lnvo1ce
Date
83592
3080440
05111 /2017
Due Date :
06/10/2017
10:
SEC EA reference SF-00730-C
SEC/DC Case Number: 3:04-mc-00145-MHP
Responsible Party for Payment D1stribut1on Fund
Tax Administra tor Appointment Date· 11130/2015
For professional serv,ces rendered as fo llows ·
~
DISCOUNT
SERYICE
mE.f
RATE
~
AMOUNT
Preparation and filing of the 2005 Qualified Settlement Fund Income Tax Return.
1,800.00
Preparation and filing of the 2006 Qualified Settlement Fund Income Tax Return.
Preparation and filing of the 2007 Qualified Settlement Fund Income Tax Return.
Preparation and filing of the 2008 Qualified Settlement Fund Income Tax Return.
1,800.00
1,800.00
850.00
Preparation and filing of the 2009 Qualified Settlement Fund Income Tax Return.
850.00
Preparation and filing of the 2010 Qualified Settlement Fund Income Tax Return.
850.00
Preparation and filing of the 2011 Qualified Settlement Fund Income Tax Return.
850.00
Preparation and filing of the 2012 Qualified Settlement Fund Income Tax Return.
850.00
850.00
Preparation and filing of the 2013 Qualified Settlement Fund Income Tax Return.
Preparation and filing of the 2014 Qualified Settlement Fund Income Tax Return.
Preparation and filing of the 2015 Qualified Settlement Fund Income Tax Return.
Preparation and filing of the 2016 Qualified Settlement Fund Income Tax Return.
Total for Servi ces
850.00
850.00
850 .00
13,050.00
----
~...,..,_ ,._, _._.,_.__~·- ·· "---·
Charges
Consulting Services - General Consulting
05/05/2017
Delivery Charge
0 000
1.40
05/05/2017
CA 2005 Tax Ret urn delivery charge.
Delivery Charge
0.000
1.40
0510512017
CA 2006 Tax Return delivery charge .
Delivery Charge
0.000
1 40
05/05/2017
. CA 2007 Tax Return delivery charge .
Delivery Charge
0 000
1 40
05/05/2017
CA 2008 Tax Re tu rn delivery charge .
Delivery Charge
0 000
1 40
05/05/2017
CA 2009 Tax Return delivery charge.
Delivery Charge
0.000
1 40
05/05/2017
CA 20 10 Ta x Return deli very charge .
Deli very Ct1 arge
0.000
140
Darnasco & Associates, LLP
Page 2 of 2
05/05/2017
CA 2011 Tax Return delivery charge .
Delivery Charge
0.000
1.40
05/05/2017
CA 2012 Tax Return delivery charge.
Delivery Charge
0.000
1.40
05/05/2017
Delivery Charge
0.000
1.40
05/05/2017
CA 2014 Tax Return delivery charge .
Delivery Charge
0.000
1.40
05/05/2017
CA 2015 Tax Return delivery charge .
Delivery Charge
0.000
1.40
CA 2013 Tax Return delivery charge.
CA 2016 Tax Return delivery charge.
Total for Charges
Invoice Total
16.80
$13,066.80
PLEASE REMIT PAYMENT VIA WIRE TRANSFER OR CHECK
ACCORDING TO THE INSTRUCTIONS BELOW:
WIRE FUNDS TO:
UNION BANK
350 CALIFORNIA STREET. SUITE 1800
SAN FRANCISCO, CA 94104
ABA NUMBER PROVIDED BY EMAIL
BENEFICIARY ACCOUNT NUMBER : PROVIDED BY EMAIL
BENEFICIARY ACCOUNT NAME: DAMASCO & ASSOCIATES LLP OR
MAKE CHECK PAYABLE TO
DAMASCO & ASSOCIATES LLP
314 SOUTH RIVER STREET, SUITE 201
HAILEY, ID 83333
05/11/2017
13,066.80
04/30/2017
03/31/2017
02/28/2017
01/3 1/2 017 +
Total
0 .00
0 00
0.00
0 .00
$13,066.80
ASSOCIATES LLP
ACCCJUNIANCY
.A.ND
CONSULTING
Now A Part of Miller Kaplan Arase LLP
3 14 S. R 1 v~ r Street, Suite 201 Hailey, ID 83333
650-726-4100
JohnS. Yun
SEC v Coxon Disgorgernent Fund
U.S. Securities & Exchange Commission
San Francisco Regional Office
44 Montgomery Street, Suite 2600
San Francisco, CA 94104
Invoice :
\D:
Date :
Due Date:
83592
3080440
05/11/2017
06/10/2017
SEC E.A. reference SF-00730-C
SEC/DC Case Number: 3:04-mc-00145-MHP
Responsible Party for Payment: Distribution Fund
Tax Administrator Appointment Date : 11/30/2015
For professional services rendered as follows:
STAFF
SERVICE
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Preparation and filing of the 2016
Preparation
Preparation
Preparation
Preparation
Preparation
Preparation
Preparation
Preparation
Preparation
Preparation
Preparation
and
and
and
and
and
and
and
and
and
and
and
filing
filing
filing
filing
filing
filing
filing
filing
filing
filing
filing
of the
of the
of the
of the
of the
of the
of the
of the
of the
of the
of the
Qualified
Qualified
Qualified
Qualified
Qualified
Qualified
Qualified
Qualified
Qualified
Qualified
Qualified
Settlement
Settlement
Settlement
Settlement
Settlement
Settlement
Settlement
Settlement
Settlement
Settlement
Settlement
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
SEC
DISCOuNT
RATE
HOURS
AMOUNT
1,800.00
1,800.00
1,800.00
850.00
Return.
Return.
Return .
Return.
Return.
Return.
Return.
Return.
Return.
Return .
Return.
Qualified Settlement Fund Income Tax Return.
Total for Services
850.00
850.00
850.00
850.00
850.00
850.00
850.00
850.00
13,050.00
Charges
Consulting Services - General Consulting
05/05/2017
Delivery Charge
0.000
1.40
05/05/2017
CA 2005 Tax Return delivery charge .
Delivery Charge
0.000
1.40
05/05/2017
CA 2006 Tax Return delivery charge.
Delivery Charge
0.000
1.40
05/05/2017
CA 2007 Tax Return delivery charge.
Delivery Charge
0.000
1.40
05/05/2017
CA 2008 Tax Return delivery charge.
Delivery Charge
0.000
1.40
05/05/2017
CA 2009 Tax Return delivery charge.
Delivery Charge
0.000
1.40
05/05/2017
CA 2010 Tax Return delivery charge.
Delivery Charge
0.000
1.40
Damasco & Associates, LLP
Page 2 of 2
05/05/2017
CA 2011 Tax Return delivery charge.
Delivery Charge
0.000
140
05105/2017
CA 2012 Ta x Return delivery charge.
Delivery Charge
0.000
140
05/05/2017
CA 2013 Tax Return delivery charge .
Delivery Charge
0.000
140
05/05/2017
CA 2014 Tax Return delivery charge.
Delivery Charge
0.000
140
05/05/2017
CA 2015 Tax Return delivery charge.
Delivery Charge
0000
140
CA 2016 Tax Return delivery charge.
Total for Charges
Invoice Total
16.80
$13,066.80
PLEASE REMIT PAYMENT VIA WIRE TRANSFER OR CHECK.
ACCORDING TO THE INSTRUCTIONS BELOW:
WIRE FUNDS TO:
UNION BANK
350 CALIFORNIA STREET, SUITE 1800
SAN FRANCISCO, CA 94104
ABA NUMBER: PROVIDED BY EMAIL
BENEFICIARY ACCOUNT NUMBER: PROVIDED BY EMAIL
BENEFICIARY ACCOUNT NAME : DAMASCO & ASSOCIATES LLP OR
MAKE CHECK PAYABLE TO:
DAMASCO & ASSOCIATES LLP
314 SOUTH RIVER STREET, SUITE 201
HAILEY, ID 83333
05/11/2017
13,066.80
04/30/2017
0.00
03/31/2017
0.00
02/28/2017
0.00
Q.1.!.W017+
0.00
~
$13,066.80
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