Securities and Exchange Commission v. Kara et al

Filing 108

ORDER RESETTING FURTHER CMC FROM 7/6/12 TO 10/26/12. Case Management Statement due by 10/19/2012. Further Case Management Conference set for 10/26/2012 10:30 AM in Courtroom 5, 17th Floor, San Francisco.. Signed by Judge Edward M. Chen on 7/5/12. (bpf, COURT STAFF) (Filed on 7/5/2012)

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MARC J. FAGEL (Cal. Bar No. 154425)
ROBERT TASHJIAN (Cal. Bar No. 191007)
[e-mail]
LLOYD FARNHAM (Cal. Bar No. 202231)
[e-mail]
Attorneys for Plaintiff
SECURITIES AND EXCHANGE COMMISSION
44 Montgomery Street, 28th Floor
San Francisco, California 94104
Telephone: [phone]
Facsimile: [phone]

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SAN FRANCISCO DIVISION

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SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
v.

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Case No. 09-CV-1880 EMC

MAHER F. KARA, MICHAEL F. KARA,
BASSAM Y. SALMAN, and KARIM I. BAYYOUK,

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JOINT STATUS REPORT AND
UPDATED CASE MANAGEMENT
STATEMENT ; ORDER RESETTING CMC
Further Case Management Conf.:
July 6, 2012 at 10:30 a.m.
Honorable Edward M. Chen
Courtroom 5, 17th Floor

Defendants.

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This matter is currently set for a Further Case Management Conference on July 6, 2012.

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The parties submit this Joint Status Report and Updated Case Management Statement in advance

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of the Conference.

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I.

STATUS REPORT

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There are four remaining defendants in this insider trading action brought by the

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Securities and Exchange Commission (“Commission”): (1) Maher Kara, (2) Michael Kara, (3)

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Bassam Salman, and (4) Karim Bayyouk. Since the last Joint Status report was submitted, a

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criminal indictment against Karim Bayyouk was filed charging him with one count of
SEC v. Kara, et al.
Case No. 09-CV-1880 EMC

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JOINT STATUS REPORT

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obstructing the Commission’s investigation of the insider trading allegations at issue in this

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action. Defendants Maher Kara, Michael Kara, and Bassam Salman were charged previously in

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related criminal actions as described below.

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The criminal action against Karim Bayyouk, U.S. v. Karim Iskander Bayyouk, Case No.

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12-CR-0420 JW, is currently pending before Judge James Ware, and a status conference is

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scheduled for September 10, 2012.

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The criminal action against Bassam Salman, U.S. v. Bassam Yacoub Salman, Case No.

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11- CR-0625 EMC, is pending before this Court and is set for a 12-day jury trial to commence

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on March 4, 2013.

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The criminal action against Maher Kara and Michael Kara (named as Mounir Kara in the

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indictment) is titled U.S. v. Kara, et al., Case No. 09-CR-0417 EMC. Maher Kara and Michael

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Kara have entered guilty pleas, but have not been sentenced. Maher Kara and Michael Kara are

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scheduled for a Status Conference in the criminal case on December 12, 2012.

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No trial date has been set for the Commission’s civil action, and dates regarding
discovery deadlines and pretrial dates have been vacated by prior orders.

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II.

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The parties provide the following information, updating the Case Management Statement

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UPDATED CASE MANAGEMENT STATEMENT

previously submitted in this matter:

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There are four defendants remaining in this civil enforcement action brought by the

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Commission: Maher Kara, Michael Kara, Bassam Salman, and Karim Bayyouk. All these

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defendants have been served and have appeared in the case.

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The parties began conducting discovery in 2009, including conducting depositions. The

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Commission produced documents obtained during its investigation pursuant to Rule 26 initial

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disclosure obligations and document requests, and the defendants have made Rule 26 initial

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disclosures and responded to document requests served by the Commission. Discovery is the

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case was stayed beginning on February 16, 2010, by order of Judge Marilyn Hall Patel. The last

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order explicitly staying discovery expired on June 27, 2011, the date of a Status Conference set

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SEC v. Kara, et al.
Case No. 09-CV-1880 EMC

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JOINT STATUS REPORT

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by Judge Patel. The parties have not conducted further civil discovery since discovery in the

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case was first stayed on February 16, 2010.

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The case was reassigned to this Court on June 6, 2011.

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The facts of the case, the legal issues, and the relief sought by the Commission have not

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changed since the case was filed and the parties submitted the original Case Management

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Statement. The parties do not anticipate any amendments to the pleadings at this time.
The case will be tried before a jury, pursuant to jury demands made by the defendants.

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The parties estimate a 10-day jury trial.

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Dated: June 28, 2012

Respectfully submitted,
/s/ Lloyd Farnham
LLOYD FARNHAM
Attorney for Plaintiff
SECURITIES AND EXCHANGE COMMISSION

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/s/ George C. Harris
GEORGE C. HARRIS
Morrison & Foerster LLP
Attorneys for Defendant MAHER KARA

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Edward M. Chen
U.S. District Judge

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/s/ Ismail Ramsey
ISMAIL RAMSEY
Ramsey & Ehrlich LLP
Attorneys for Defendant MICHAEL F. KARA
/s/ Patrick W. Blegen
PATRICK W. BLEGEN
Attorneys for Defendant BASSAM Y. SALMAN
/s/ Matthew F. Leitman
MATTHEW F. LEITMAN
Miller Canfield Paddock and Stone, PLC
Attorneys for Defendant KARIM I. BAYYOUK

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S DISTRICT
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___________________________
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IT IS SO ORDERED. Further CMC
is reset from 7/6/12 to 10/26/12 at
10:30 a.m.

UNIT
ED

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N

C
OF
D IS T IC T
R GENERAL ORDER 45 ATTESTATION

In accordance with General Order 45, each of the signatories to this document have
concurred in its filing, and I shall maintain records to support these concurrences.

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/s/ Lloyd Farnham
LLOYD FARNHAM

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SEC v. Kara, et al.
Case No. 09-CV-1880 EMC

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JOINT STATUS REPORT